The Hobart real estate market retained its place as Australia’s leading capital city real estate market in July with growth of 2.9% in median dwelling values to $445,235.

However, the Tasmanian capital’s market is slowing after recording monthly growth of 3.4% in June. Real Estate Institute of Tasmania’s President Tony Collidge said, “We are transitioning to a more normal market with much of the heat gone out of it. While stock levels are starting to slowly increase, there still remains a shortage of properties in most areas.”

“Of particular concern is the retreat of investors from our market at a time where we need more rental accommodation. This has, however, provided a great opportunity for first home buyers to engage.”

While price rises may be softening, Tony doesn’t expect a slide in values of the magnitude experienced by owners in Melbourne and Sydney. “Sellers may need to readjust their expectations while there is good incentive for buyers to engage. Our market still represents outstanding value when you live in the best place in the world.”