Real Estate

Hobart home price growth is still top of the charts

Home Owners
Written by The ReReport
As seen in the Source link, written by on 2019-07-01 22:41:43

Andrew Lemm and Nicole Sale with their children, Florence, 3, and Elsie, 1, at their home in Seven Mile Beach. Picture: ROGER LOVELL

HOBART has posted the nation’s best annual change in home values for the 20th consecutive month.

CoreLogic’s latest Home Values Index revealed 2.9 per cent annual growth in Hobart, 1.4 per cent in Canberra and falling values in every other city.

In June the change in dwelling values — houses and units combined — was 0.2 per cent in Hobart and Melbourne, 0.1 per cent in Sydney and negative elsewhere.

At this time last year Hobart’s median dwelling value was $436,899. It is now $453,033, which was higher than Perth by $13,301, Adelaide by $22,379 and Darwin by $65,651.

Homeowners Andrew Lemm and Nicole Sale put their Seven Mile Beach home on the market a week ago and it quickly rocketed up the chart to grab the no.1 spot as Tasmania’s most viewed home of the week.

They reckon the outstanding lifestyle and the location will be the first things potential buyers notice about the property.

The property at 9 Esplanade, Seven Mile Beach. Picture: Charlotte Peterswald for Property

Mr Lemm said their family-size house would be well suited to a growing family, especially one with older kids.

“It feels like a good time to sell as there is nothing on the market in Seven Mile Beach like our house,” he said.

“We are 15 minutes from the city here but the relaxed lifestyle feels like you are on the East Coast.”

CoreLogic’s data revealed nation-leading results for Tasmania’s regional areas including three of the top four non-capital city regions.

CoreLogic head of research Tim Lawless said the best-performing regional markets over the past year have been in Tasmania, however, despite the strong annual performance, the momentum was slowing across Hobart and the regional areas of the state.

South-East Tasmania homes posted an annual change of 7.7 per cent, the West and North-West 6.4 per cent and Launceston and North-East 4 per cent.

In the rental market, Australia’s largest annual increase in rent was in Hobart at 4.7 per cent.

The gross rental yield in Hobart was 5.2 per cent and 5.3 per cent in regional Tasmania, both above the national average of 4.1 per cent.

For people looking to get into the market with a home loan, Mr Lawless noted that “tight credit conditions are the new normal”.

He said lenders have a lot more information than they used to when deciding whether or not a borrower is credit-worthy.

“Lenders are progressively becoming less reliant on average household expense benchmarks and prospective borrowers should expect some scrutiny of their balance sheets during the loan application process,” he said.

“Borrowers applying for debt that is greater than six times their income may find it increasingly difficult to secure a loan.”