'Buyers' market' returns as Launceston house prices hit standstill

New data shows dwellings in the Launceston and North-East rose by just 0.5 per cent in 2023, while values in Hobart and the North-West fell by 0.8 and 1.3 per cent respectively.

CoreLogic research director Tim Lawless said an increasing number of Tasmanian homes were finding their way onto the market, giving buyers more sway.

"Vendors have been relatively active ... we've seen advertised stock levels rise to be 50 per cent above the five year average," Mr Lawless said.

"That simply gives buyers more choice, they're not under a lot of urgency to buy and can really negotiate quite hard on prices.

"It's definitely turned to a buyers' market over the past year and a half."

Hobart's 0.8 per cent decline represented the weakest growth in values of any capital city in 2023.

Dwelling prices in Sydney, Brisbane and Perth grew by between 11 and 15 per cent across the year, while Darwin (-0.1 per cent) was the only other capital to experience a drop.

Mr Lawless said Hobart's decline was a result of affordability constraints and a slowdown in the state's population growth.

"The only capital city to record a stronger decade of average level growth has been Sydney," Mr Lawless said.

"Hobart has seen 6.4 per cent average annual growth in the past 10 years, Sydney has 6.5 per cent.

"But that's got its downsides as well in the sense that it's become much more unaffordable.

"We've also seen interstate migration fall into negatives across the state, that's probably taking away from purchasing demand."

Mr Lawless predicted Tasmania's property market would remain steady for at least the first half of 2024.

As of December 31, the median price for dwellings across Tasmania's four SA4 regions are as follows: $656,947 (Hobart), $598,470 (South-East), $524,506 (Launceston and North-East), $446,749 (West and North-West).