By Cait Bester.
Mackay's house prices rose by a healthy 2.6 per cent last year — a sign residents feel confident about job security and their finances.
The average house price rose to $400,000, according to a new report by Master Builders Queensland.
Master Builders Mackay and Whitsunday regional manager Malcolm Hull said the increase proved the city had weathered the worldwide economic downturn.
"Although the figures show prices have risen, it is great news for Mackay because it means that we have a strong, stable and confident economy," Mr Hull said.
"Mackay has weathered the storm quite well in the last 12 months while the rest of the world was suffering from the economic crisis."
Real Estate Institute of Queensland Mackay zone chairman Barry Lynam said the economic downturn hadn't scared first home buyers away, which made three-bedroom homes highly sought after.
"There is no evidence of our property market dropping throughout the economic downturn," he said.
"There was a lot of anxiety this time last year when people were losing their jobs but it didn't affect the real estate market.
"Things picked up very quickly here in Mackay and based on stable employment and finances it makes people want to spend their money and they are turning to the property market.
"In recent times people have been burnt through the stock market, which can change every five minutes, so therefore they are turning to the property market as a secure long-term investment.
"In the last 12 months the majority of people walking through the door have been first home buyers, which has pushed demand for the basic three-bedroom house with a single lock-up garage. A lot of Generation Yers and couples are entering the market, therefore, they are not wanting a lot of space and the basic three-bedroom home is in their price range."
Mr Lynam said the median cost of a three-bedroom home in December 2008 was $388,000; that price jumped to $400,000 in December 2009.
Harcourts Real Estate consultant Ben Chick said there was no better time to jump into Mackay's property market.
"Mackay is stable, we are confident and there is a lot of positivity with a boom on the horizon," Mr Chick said.
"If you've got the right location and the right price, it's not uncommon to sell a house in a couple of days.
"Houses are being snapped up and it's the perfect time to be buying a home, whether it be your first time or for an investment property."
Taken from The Daily Mercury 12 January 2010