From doldrums to one of the best years on record

But then the unexpected happened. Peak body, the Real Estate Institute of Tasmania, released its December quarter report today and its end-of-year figures, with one 2024 result in particular jumping off the page.

Across the state, Tasmanian properties recorded $5.96bn worth of sales last year.

That’s the second-highest result behind the most recent boom market, 2021, when there were $6.23bn in sales.

REIT president Russell Yaxley said the annual data showed positivity across all segments of the market, including increased transactions, the second-highest number of sales worth $1m or more, and increasing first-time buyers and investors, too.

“It is certainly an improving market,” he said. “Our market has experienced a turnaround in 2024.

“Activity levels have increased, and we are now seeing upward pressure on prices.”

In the December quarter, there were 2344 sales worth $1.46bn, which was $110m higher than December 2023.

The median house price, $610,000, was $20,000 higher than the previous quarter. There were more house sales in December, 510, than in the previous quarter or at the same time in 2023.

This five-bedroom four-bathroom Relbia house recently sold for a whopping $2,900,000. Picture: realestate.com.au/sold

Launceston’s median price has grown by $12,500, although with 54 fewer sales in the three-month period.

On the North West Coast, December transactions were almost exactly the same as the previous quarter and year, while the median grew by $15,000 compared to December 2023 and by $11,250 compared to the September quarter.

First-time buyers purchased 505 homes, while investors acquired 318. Interstate-based purchasers picked up 370 properties. Foreign buyers accounted for less than 1% of the state’s total sales.

Rental availability, particularly at the most affordable end of the market, remains challenging.

Mr Yaxley said it was an issue of supply, and not a problem with an easy fix.

A typical three-bedroom Hobart house cost $550 per week to rent in December, Launceston $480 and in the North West $420.

'Which capital cities are leading home price growth': youtube.com/mortgagechoice

Battery Point was the most expensive suburb in the quarter with a median sale price of $2.51m, followed by Acton Park at $1.2m and Sandy Bay at $1.0725m.

Tasmania’s most affordable areas were Queenstown with a $148,750 median house price, followed by Smithton ($365,000) and East Devonport ($367,500).

The time it took to sell a home in Hobart decreased from 38 days to 30 days compared year-on-year. The northern markets were also faster, with Launceston moving from 37 to 29 and the coastal hubs in the northwest from 41 and 37.

Mr Yaxley said homeowners and aspiring homeowners could feel confident in buying and selling on the back of such strong figures.

“It’s too soon to tell how much the first interest rate cut — and potentially more — will affect our market, but this year we are seeing steadily increasing numbers at open homes, and growing confidence that people can buy and sell when they need to,” he said.

This article first appeared on realestate.com.au and has been republished with permission.