The real estate agents in Tasmania seem very positive about the housing Market in Tasmania in spite the fact that prices of houses in Hobart are falling. Hobart showed a fall of two percent in the house price index for the June quarter. The figure was put across by the Australian Bureau of Statistics. This was one of the worst performances falling next to Perth. Peter Bushby, the President of the Real Estate Institute of Tasmania is of the opinion that in spite of the increasing interest rates, the reality market in Tasmania seems to be doing well. It is sustaining than the housing markets in other states. The fact that it is sustaining might increase the activity once there is a fall in the interest rates.
He believes that maybe this period was the worst and it is over. Things will only improve from now. So people are moving with a little caution. The Real Estate Institute of Tasmania’s statistics and the Australian Bureau of Statistics figure are more or less the same. This shows that the market has been steady. Though everybody is looking for a stronger market at the moment, the Tasmanian real estate market is bearing quite well at the moment. In the ninety’s Tasmanian housing sector was reeling under dark days. There was a population decline due to a large net interstate migration. By mid 2002 there was growth in the economic activities in the state. This led to a positive net migration inflow which allowed an increase in the activity in the housing sector. The huge upward revision in the ABS house price series in Hobart show that the market for the region has reinforced. The past four years has seen the biggest quarterly drop and the experts are divided about how much more the price of house will fall.
Many believe that the swiftly increasing mortgage rates and an intimidating economic slowdown will steer in a sustained period of property market weakness. It is not just in Tasmania that there is a fall in
housing prices. This trend has been seen in many parts of the country. The Australian house price index fell by 0.3 per cent in the three months to June, according to the Australian Bureau of Statistics.
It is believed that if the interest rates are cut then will be a shift from cash based investment in share market to the property market. An increase in population and falling rate could reignite the property market. People will want to invest in the housing sector as there will be a demand for more housing. A survey by the real estate data group Australian Property Monitors show that median house prices fell in five of Australia’s eight capital cities in the three months to June 30.