Interest rate rises are having a noticeable effect on the property market, Hobart’s sales volumes down nearly 19 per cent last year compared to 2021.
Proptrack’s latest forecast predicts Hobart’s average property value will slide by 7 to 10 per cent this year, in line with the national average.
Analyst Cameron Kusher says the trend is here to stay.
“We are expecting price falls to continue and accelerate in 2023 as interest rates rise a few more times this year, but also as previous interest rate rises really start to impact on borrowers,” he said.
“We are expecting, based on these forecasts, that the cash rate will rise another 50 basis points from 3.1 per cent where it is.”