hobarts housing bubble bursts

http://www.abc.net.au/news/stories/2010/08/18/2986675.htm?section=business

Hobart property prices weaken-bubble is bursting
Posted Wed Aug 18, 2010 4:12pm AEST


The industry says Tasmania is still more affordable than other states. (ABC News: Cate Grant)

Hobart 7000 Weaker property prices in Hobart have made city housing slightly more affordable in June.

But figures from the Housing Industry Association show affordability has worsened statewide.

Average mortgage repayments in Tasmania have risen more than 25 per cent in a year and the association's executive director Stuart Clues says it is getting tougher for people trying to get into the market.

"We mustn't lose sight that, as a state, we're still relatively more affordable than our state counterparts."

"You can still buy a home here for around $350,000 compared to $450,000-type entry points interstate but what we are seeing here is that competitive advantage starting to deteriorate," he said.