The following analysis looks at annual median prices and annual sales volumes in key mining towns:
Port Hedland, WA
Median prices in Port Hedland peaked at $925,000 in June 2013 and sales volumes peaked at 402 in July 2006. Current median prices have fallen to $390,000 (-58% lower than peak), and current sales are 128 (-68% below peak). “In what may be a positive sign for the market, annual sales are once again trending higher, although the median prices trend is yet to bottom out.”
Karratha, WA
Median prices in Karratha peaked at $815,000 in October 2010 and sales volumes peaked at 511 in March 2005. Current median prices have fallen drastically to $362,980 (-55% lower than peak), and current sales are 235 (-54% below peak). Transaction numbers have been trending higher, but the median sales price is still declining, albeit at a more moderate pace.
Kalgoorlie-Boulder, WA
Median prices in Kalgoorlie-Boulder peaked at $351,250 in June 2015 and sales volumes peaked at 1,656 in September 2006. Current median prices have fallen slightly to $312,000 (-11% lower than peak) and current sales are 345 (-79% below peak). While transaction numbers appear to be levelling, there is no sign of any upwards pressure on prices or turnover.
Mackay, QLD
Median prices in Mackay peaked at $435,000 in June 2013 and sales volumes peaked at 3,264 in April 2004. Current median prices have fallen to $345,000 (-21% lower than peak) and current sales are 1,045 (-68% below peak). While transaction numbers have recently levelled across the Mackay housing market, there has not been any significant improvement.
Many mining towns are experiencing a slight uptick in sales
Smaller mining townships which don’t act as major service centres have tended to see much steeper declines in median selling prices than the larger townships. “The decline in sales and prices from the market peaks has been substantial across all of these regions, however the regions that have seen the most significant downturn were those that also recorded a significant upswing in prices and turnover rates prior to the peak in commodity prices,” noted Kusher.
Most of these mining towns have experienced a recent stabilisation in sales, with some regions seeing an increase in sales volumes. Although the modest uptick in sales may have broken the declining trend in a number of areas, median selling prices are generally continuing to trend lower across each of the regions highlighted in the CoreLogic report.
“The improvement in transactional activity could potentially be due to larger numbers of distressed sales moving through these markets, but may also be attributable to a cautious return of buyers seeking out a bargain.”
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