The Tasmanian property market began to slide in the March quarter, though activity remains stronger than one year previously, new data from the Real Estate Institute of Tasmania (REIT) suggests.
The latest figures show sales volumes decreased by 4.6 per cent for the island in the past three months, yet remain 14.9 per cent higher than March last year.
The median house price sat at $305,000 for the quarter, a 4.5 per cent increase on 12 months previously.
Launceston saw the greatest slump in early 2014, with sales dropping by 18.5 per cent.
However, due to impressive results throughout 2013, sales remain 25.1 per cent higher than the previous March.
Hobart, despite a drop in sales early in the year, is currently seeing volumes that have risen by 10 per cent on the last 12 months.
The median price also climbed higher in Hobart over the quarter, increasing by 4.1 per cent.
Particularly popular suburbs include Brighton, Clarence, Hobart and Kingborough, all of which had increased median prices and higher sales volumes, the REIT reports.
REIT president Adrian Kelly said the shrinking number of first home buyers could be linked to falling sales volumes.
He warned the removal of the First Home Owner Grant, slated for 1 July, would only exacerbate the situation.
“The number of first home buyers continues to dwindle across the state, now accounting for just 17 per cent of house sales, and removing the grant come 1 July is likely to only make this situation worse,” he said.