Tasmanian Housing Market Update: Insights from Cameron Kusher
In a recent video update, Cameron Kusher, Director of Economic Research at Rea Group, delves into the current state of the Tasmanian housing market amidst a weak national economy. With economic growth at just 1.1% and rising inflationary pressures, household saving ratios are low, and consumption is tight. Interest rates are at a 12-year high, and despite low unemployment, job creation is weakening.
Kusher highlights the housing market challenges, including high building costs, limited supply, and population growth driving demand. While rental prices in Hobart have decreased, unit rents have risen in the West and Northwest. Increased rental stock has led to lower demand and longer market days.
Kusher suggests that property prices may stabilize, emphasising the need for more residential investment and support for first-home buyers to tackle rental market issues.
For a detailed analysis, watch the video here.