The state has recorded the highest number of sales for the first three months of the year since 2004, the Real Estate Institute of Tasmania says.
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The organisation released its March quarterly report on Wednesday which showed that there were 2043 sales with a median price of $325,000 for the first three months of this year.
This represented a 20.9 per cent sales growth on the previous March quarter and 3.2 per cent boost in the median price.
Breaking it down to within municipal barriers, Launceston recorded the highest number of sales in the state – up 44 per cent from 12 months ago.
There were 325 sales recorded over the first three months of 2017 with a median price of $275,000.
The lowest median house price in the state was in Zeehan ($75,000) while the most expensive place to buy was in Battery Point and Sandy Bay ($853,000).
There was a decline statewide in sales to first home buyers who picked up just 11 per cent of the properties sold – a decrease of 15.4 per cent over the same period in 2016.
Meanwhile, investor activity was boosted by 50 per cent compared to the previous March quarter and made up for 21 per cent of all sales over the past three months.
One-third of these sales were made on Launceston properties.
The 499 houses on the rental market within the Launceston municipality were going for a median price of $300, compared to $450 in Hobart.
Real Estate Institute of Tasmania president Tony Collidge said a desperate shortage of properties for sale and rent was placing pressure on both markets.
But he said he believed the climate was right to attract more development, particularly for infill housing.
“The last boom had a lifespan of nine years and we only appear to be three years into this new cycle,” he said.
“I am hopeful that as a state with strong buyer and rental demand that we are now able to demonstrate that there are real opportunities for increased levels of private investment into the housing sector.”