One state's property market may be on the way back up after house sales recently reached their highest level since 2010.
House sales in Tasmania over the March quarter increased by 12.1 per cent from the previous year, according to the Real Estate Institute of Tasmania (REIT).
The increase was led by a 20.5 per cent increase in Hobart and a 24.9 per cent jump in Launceston, with those two cities containing about 60 per cent of the state’s population.
Tasmania’s overall median house price climbed 1.6 per cent to $310,000, while the median house price for first home buyers was $272,000.
REIT president Tony Collidge said the market had bottomed out across most areas of the state and is now set on an upward course.
“Several suburbs across the state are near or have achieved their highest ever median prices, and the increase in sales activity is reducing stock supply which could shortly place upward pressure on house prices,” he said.
“Increased consumer confidence, low interest rates and government stability are all factors contributing to our current positive market outcomes.”
The quarterly report also found that investors increased their share of house sales from 14 per cent to 16 per cent, while interstate buyers grew their share from 16 per cent to 17 per cent.
Mr Collidge said these figures demonstrate how expensive the markets of Sydney and Melbourne are.
Many mainland investors are now looking for alternative markets and are considering Tasmania because of its good returns, low vacancy rates and improving confidence, he said.