The tide is beginning to turn for the Mount Isa housing market after a few tough years.
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National property market analyst Simon Pressley said the next five years is expected to be better than the past five in Mount Isa.
“The property markets’ biggest influence is the local economy,” Mr Pressley said.
“Mount Isa is a mining town with very specific commodities and the outlook for those commodities is looking good.
“Copper especially has a lot more confidence worldwide and the price is holding up - when that sentiment is up, mining companies want to find more of it,” he said.
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Mr Pressley said the increase in mining exploration in the region is a tell-tale sign of what is to come.
“Property and economy go hand in hand and more exploration will lead to a boost in the property market,” Mr Pressley said.
“I do not have a crystal ball but I think there is more potential for growth in your region which will lead to more jobs, and more people moving to Mount Isa.
“It will improve confidence as well and when the local mood picks up, that is what some residents need to go from a renter to a home owner or a home owner deciding to renovate,” he said.
The local property market has taken a beating in the past few years with the median house price dropping by 17 per cent in 2016.
Mr Pressley said the average house price in Mount Isa at Christmas time last year was $265,000.
Two years prior to that it was $339,000.
“If that is your home that does not feel good, but we are now confident the market will begin to improve,” Mr Pressley said.
“The number of houses sold in Mount Isa in the 2017 calendar year was 111. But 12 months earlier 95 were sold.
“Sure it is not a huge increase but the important thing is that it is increasing,” he said.
After Glencore’s threat to close its copper operations last year the real estate market nearly slumped to an all time low.
Town and Country principal John Tully said he is starting to see signs the market is coming back to life.
“I cannot see it booming overnight, but we are seeing slight improvements,” Mr Tully said.
“We hit rock bottom around Christmas time but we are now seeing it start to pick up again slowly. It is going to take a while but there is no question that it is improving.
“The cheaper houses are selling and people are doing them up which is a good sign,” he said.
Market analyst Simon Pressley said although prices will not soar overnight, the confidence in the local economy will eventually lead to a surge in house prices.
“We are seeing small signs of increased buyer activity and I think that is a correlation to a broader economic sentiment,” Mr Pressley said.
“In general, your region is a very, very valuable Australian asset. The commodities you have, well the world will always need that stuff, and the broader Australian public would be wise to appreciate that.”
