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House sales in the March quarter increased 12.1 per cent compared to the previous year, according to the REIT.
That 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 has 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, 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 are indicative of the Melbourne and Sydney markets being so expensive.
Many mainland investors are now looking for alternative markets, and are considering Tasmania due to its good returns, low vacancy rates and improving confidence, he said.