Volume of house sales at lowest point in two decades
The Real Estate Institute of Tasmania (REIT) today released the March 2011 Quarterly Property Report, revealing the volume of house sales across Tasmania is at its lowest point in two decades.
REIT President Adrian Kelly said during the March quarter, while house sales in Tasmania had increased by 3.1 per cent, the figures were still down 18 per cent on the previous March quarter.
“The reason for the low number of sales is not due to a lack of houses on the market, but the fact that many properties are overpriced,” Mr Kelly said.
“Those houses that are priced correctly are selling in a reasonable time frame, while those that are overpriced are just sitting there.
“The March quarterly report revealed the average number of days a house sat on the market increased by 11 days on the same quarter the previous year, now sitting at an average of 64 days.
“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.”
“Buyers are certainly not silly, with most buyers being well aware of the estimated value of a property, so if a property is overpriced, even by five per cent, it’s not going to be sold in a hurry.”
Mr Kelly said contained within the report was the statewide median house price, which remained relatively steady for the March quarter, recording a marginal decrease to $310,000.
“The report also showed that Launceston was the only centre to record an increase in median house price for the quarter, with a 1.8 per cent rise,” he said.
“Hobart and the north west centres’ median house prices decreased by 5.6 per cent and 3.3 per cent respectively.
“Interestingly, house purchases made by people interstate were up 23.3 per cent. Interstate purchasers are spending an average of $320,000, mainly in the areas of Launceston, Kingborough and West Tamar.
“One out of every four properties sold during the March quarter was purchased for investment purposes, although these were cheaper houses, with each investor spending an average of $245,000 on a property.
Mr Kelly said the quarterly report also revealed the top three most expensive suburbs in Tasmania, which were Sandy Bay, Kettering and Mount Nelson, while the top three least expensive suburbs were Waverly, Scottsdale and Bridgewater.
“The top three Tasmanian suburbs with the highest turnover in house sales were Devonport, Glenorchy and Kingston,” he said.
The REIT is a member organisation representing the views and the professional needs of its members – these being more than 95 per cent of real estate agents (and their staff) throughout the State.
For more information: Lucinda Bray, Font PR, 0438 280 486