Houses For Sale In Montrose

Housing market horrors

HOUSE prices have fluctuated wildly across Tasmania over the past 12 months as turnover hit a 20-year-low and buyers left overpriced properties on the market.

Market data released yesterday by the Real Estate Institute of Tasmania shows that while the statewide median house price remained relatively steady in the March quarter, prices in Greater Hobart fell by 5.6 per cent and across the North-West by 3.3 per cent.

House prices - March quarter 2011

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There were some pockets of price growth.

Median house prices grew over the quarter in Montrose, Westbury, South Hobart, Deloraine, Riverside, Primrose Sands, Carlton, Beaconsfield, West Moonah and West Launceston.

On a yearly basis between March, 2010, and March this year prices rose in Westbury, Wynyard, Newstead, Smithton, Montrose, Spreyton, Huonville, Hadspen, Launceston city and Kettering.

But there were also big falls over the quarter.

Median property prices, based on data from the sale of four houses or more, fell by 30.2 per cent in Hobart city.

There were significant price slides in Upper Burnie (27.4 per cent), Prospect (23.6), Taroona (22.7), New Town (22), Penguin (20.2) and Margate (19.8 per cent).

Over the year, houses lost value in Romaine in Burnie, where the median price fell a whopping 61 per cent, Bicheno (46 per cent) Orford, (40.3), Perth (35.8), South Burnie (30.8), Park Grove (27.2), King Island (26.4), Upper Burnie (22.1) Geilston Bay (21.8 per cent), Bellerive (21.1) and Mt Stuart (20.7).

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The only city to record an increase in median house price in the quarter was Launceston with an 1.8 per cent rise.

While the statewide median house price fell to $310,000, interstate buyers were willing to pay above market price, spending a median of $320,000 on properties in Launceston, Kingborough and West Tamar.

REIT president Adrian Kelly said house sales fell 18 per cent between March this year and March, 2010. He said many on the market were overpriced.

"Anyone currently selling a house in Tasmania needs to be willing to meet market prices or be ready for their house to sit on the market for up to a year or more," he said.

Turnover was highest in Devonport, Glenorchy and Kingston.

In Hobart, 44 per cent of buyers lived in the suburb in which they bought, 29 per cent were from Hobart area, 5 per cent from Tasmania, 10 per cent were from interstate and 12 per cent were unknown.