HOBARTS HOUSING MARKET

Hobart just clocked the biggest home price jump in Australia last month. At Hills Accountants in Hobart, we would like to offer a few thoughts on this subject to help you with what you do next.

Yep, while most of the country’s real estate market tiptoed forward, our little patch of paradise shot up 0.6%, according to CoreLogic’s latest data.

Why? Well, the first home loan rate cut in over four years might have had something to do with it. The RBA’s recent decision put a little more pep in buyers’ steps, and suddenly, it’s looking like a seller’s market again. Great news if you already own property. Less great if you’re trying to get your foot in the door without paying an arm, a leg, and possibly a kidney.

But Before You Dive Headfirst Into a New Mortgage… Hold Your Horses!

Rate cuts can be exciting, but they also come with a few hidden potholes. Here’s what you need to watch out for before making any big financial moves:

1. Lower Rates ≠ Automatic Affordability

Yes, your mortgage repayments might shrink a bit, but with property prices creeping up, any savings could get wiped out. That $10K discount on interest over 30 years won’t help much if the house you wanted just jumped $50K in price.

2. Property Prices Might Keep Climbing

CoreLogic’s data suggests Hobart’s market is bouncing back, and history tells us lower interest rates often mean higher property prices. If you’re waiting for the “perfect time” to buy… well, good luck predicting that crystal ball.

3. More Cuts? Don’t Bet Your House on It

RBA Governor Michele Bullock has made it clear: this cut doesn’t guarantee more are coming. If you’re stretching your budget expecting rates to keep dropping, you might be in for a rude shock when they don’t.

4. Thinking About a 40-Year Mortgage? Read This First

Some buyers are looking at longer mortgage terms to make repayments more manageable. Sounds good on paper, right? But in reality, a 40-year loan could mean you’re still paying off your house when self-driving hover-cars are the norm (and you’ve forked out a truckload more in interest).

5. The Bigger Picture Still Matters

Interest rates aren’t the only factor in your financial health. Wage growth, job security, inflation—these all play a massive role in how comfortably you can handle a mortgage. Make sure you’re looking at the whole picture, not just today’s low rate.

So, What’s the Move?

Whether you’re buying your first home, refinancing, or just trying to figure out if you should sell before your neighbour does, Hills Accountants in Hobart can help you make sense of it all. From crunching the numbers to making sure your finances stay on track long-term, we’re here to help.

Give us a call and let’s talk strategy—because buying property should be exciting, not terrifying.

Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.

Talk to Kathy and the team today and stay ahead with Hills Insights.
Call Now! 03) 6273 7800, or email info@hillsaccounting.com.au.