According to this report, Prices were being driven higher by a temporary influx of residents on high incomes creating greater housing demand at a time in which supply which was largely irresponsive which drove prices to record high levels. As the demand subsided supply was beginning to increase which led to substantial falls in both prices and sales.

As resource investment has stalled over recent years, demand for housing in towns linked to the mining and resources sector has fallen which has dragged house prices lower.  More recently many of these towns have seen sales volumes begin to lift and in some regions there are signs that the rate of decline in house prices are starting to slow.  This leads to the question as to whether the worst of the price falls in these areas are now in the past?

History has shown that mining booms don’t last forever and it would be difficult to find anyone that could suggest the house prices in many of these towns were sustainable during the boom.  Prices were being driven higher by a temporary influx of residents on high incomes creating greater housing demand at a time in which supply which was largely ir-responsive which drove prices to record high levels.  As the demand subsided supply was beginning to increase which led to substantial falls in both prices and sales.

In the following section we highlight some of the key statistics for house prices in the selected mining and resource related regions of Australia.

Gladstone

578 sales over the past year at a median price of $323,875.  Sales volumes are 68% lower than their July 2007 peak and median prices are 32% lower than their September 2012 peak.

Median house prices and annual sales,
Gladstone

2017-05-22--gladstone

Mackay

1,216 sales over the past year at a median price of $335,000. Sales volumes are 63% lower than their April 2004 peak and median prices are 23% lower than their June 2013 peak.

Median house prices and annual sales,
Mackay

2017-05-22--mackay

Isaac

198 sales over the past year at a median price of $140,000. Sales volumes are 70% lower than their March 2012 peak and median prices are 77% lower than their November 2012 peak.

Median house prices and annual sales,
Issac

2017-05-22--isaac

Port Hedland

204 sales over the past year at a median price of $300,000. Sales volumes are 49% lower than their July 2006 peak and median prices are 67% lower than their June 2013 peak.

Median house prices and annual sales,
Port Hedland

2017-05-22--port-hedland

Karratha

289 sales over the past year at a median price of $285,000. Sales volumes are 44% lower than their March 2005 peak and median prices are 65% lower than their October 2010 peak.

Median house prices and annual sales,
Karratha

2017-05-22--karratha

Roxby Downs

31 sales over the past year at a median price of $225,000. Sales volumes are 83% lower than their December 2003 peak and median prices are 55% lower than their October 2013 peak.

Median house prices and annual sales,
Roxy Downs

2017-05-22--rosbydowns

While each of these markets has recorded a significant fall in sales and selling prices over recent years, more recently each market has started to see sales rise.  While this is unlikely to represent demand substantial enough to drive prices higher it may be enough to slow or stop the declines in prices.

It should also be remembered that it is not as if there is no demand for housing in these towns, it is just that demand is substantially lower than it was during the mining boom.  Someone looking to purchase now is securing a property at a substantial discount from previous highs however, these towns also continue to achieve some of the best rental returns based on current pricing and rents.  While we expect very little prospects for capital growth over the coming years, investors looking for a passive income may be becoming more attracted to these market which could explain the recent uptick in sales.

Source Corelogic RPData

http://ljgrealestate.com.au/rental/14-fourth-avenue-mount-isa-qld-4825/

While some potential home buyers might be praying for a sudden crash in prices to improve affordability, Saul Eslake says that wouldn’t be desirable. “You wouldn’t want to solve Australia’s housing affordability problem the way the Americans did,” he says. “The best way to solve it would probably be to have an extended period where house prices were flat and incomes grew rapidly. It would be a good thing if we had a gradual deflation of house prices.”

The property market is currently in a st

Brisbane’s vacancy rate has reached 4.4

Concern for investors in a new property

About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. LJ Gilland Real Estate Pty Ltd LREA推荐书LJ Gilland房地产 http://ljgrealestate.com.au/testimonials/ http://ljgrealestate.com.au/competitive-commission/ http://ljgrealestate.com.au/property-management/ http://www.facebook.com/ljgrealestate L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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