Yesterday the Reserve Bank board announced it would lower interest rates by 25 basis points.

K & C Realty Property Consultant Kim McKelvie said she was hopeful the interest rate fall would attract more buyers to the Mount Isa property market.

“It’s true that the current economic situation has seen a slowing of the market. There are not as many buyers as there were 12 months ago,” she said.

“I would like to think a decrease in interest rates would encourage more buyers.”

Ms McKelvie said houses priced between $300,000 and $600,000 would have to lower their prices to attract a buyer.

“For the average family home in Mount Isa, it is definitely a buyer’s market,” she said.

“People in this market will definitely have to drop their prices to find a buyer.”

However, it is the Mount Isa residents who are feeling the pinch of the falling property values.

Skye Wells and her partner bought a property in Happy Valley for $365,000 in August 2007.

Despite spending $30,000 on renovations, she only received a property valuation of $370,000 12 months later.

Ms Wells said she was disappointed to only receive a valuation $5000 higher than what they paid for the property.

Ms Wells said, based on the lower than expected valuation, they decided not to sell the property.

Instead, they rented it out for a higher than expected amount.

“We’re getting a fantastic rental price from our home,” she said.

“It’s almost positively geared so in that sense it’s worked out well. But there does seem to be a situation in Mount Isa where housing prices are low but rent prices are going through the roof.

“For investors it’s a good situation because the rent is so good but for people who own a home and want to sell it so they can leave town, they’re not able to – they’re trapped in Mount Isa.”

Mount Isa resident Bill Steers has been trying to sell his Angela Boulevard property for the past six weeks.

He said he had already lowered the asking price of his house by $50,000 in an attempt to find a buyer.

“I don’t want to have to lower it any further,” he said.

“I think we’ve got a 50-50 chance of selling in the current market.

“We’ve had a few lookers but nothing serious so far.”