Median house price on rise Cheaper stock in demand
THE median price of homes is increasing in Townsville as bargain hunters hoover up a wealth of cheaper stock at values below $200,000, according Herron Todd White.
In its latest Townsville in Focus report, the property consultants say the median house price in the city has gained ground, increasing 5.1 per cent to $328,000 in the year to April.
But the report attributes the increase more to a greater mix of lower priced house sales in the calculations rather than an across the board boost in values. “Median prices lowered during early 2019 from a flurry of demand for houses in the sub-$200,000 bracket in older established suburbs,” the report says.
“However this impact has since dissipated due to the exhaustion of sub-$200,000 stock, causing median prices to revert to compositionally normal levels.”
The report says house sale volume trends rose strongly during 2019 but started to soften as the impact of the COVID-19 pandemic constrained the market.
Sales volumes trended back from 195 per month in January to 179 per month in March.
Also, house sales were now taking place more consistently across all Townsville suburbs with much less focus on the central 4810 postcode suburbs.
“Anecdotal information is that the market dipped in late March and early April but by late May had regained early March levels,” the report says.
“In addition, the amount of stock available for sale is depleting as new listings have slowed.”
Keyes and Co Property director Damien Keyes said they noticed sales picking up from late last year as the impacts of the Townsville floods abated. While sales had dived in April and March this year, they had rebounded in May as COVID-19 restrictions began to be lifted. “We were humming along in February,” Mr Keyes said.
“Obviously it’s been a bumpy start to the year but