The saying "as safe as houses" is a lie, according to Townsville resident Heather White, who is about to lose almost $100,000 on the resale of her home in the north Queensland city.

Key points: The property market Townsville crashed in 2008 and still has not recovered

The property market Townsville crashed in 2008 and still has not recovered The Real Estate Institute of Qld has urged the Queensland Government to boost the market by extending the first home owners grant to second hand homes

The Real Estate Institute of Qld has urged the Queensland Government to boost the market by extending the first home owners grant to second hand homes But a spokesperson for Treasurer Jackie Trad would not comment on whether the Government would support changing the grant

When Ms White bought her family home more than a decade ago, she thought the resale profit would fund her retirement.

Now she is preparing to lose almost $100,000.

The five-bedroom house in Townsville was snapped up at the peak of the property boom in 2007 for $355,000.

Twelve years later, instead of increasing in value, the home's worth has dropped so dramatically, it has left Ms White struggling to comprehend the financial loss.

"The latest we've heard is someone might offer $260,000 and that's devastating, absolutely devastating," Ms White said.

"You can't get your head around it — it's insulting and it's heartbreaking."

Heather White is selling her family home at Kelso in Townsville. ( CoreLogic )

Townsville yet to prosper again

The property market in the north Queensland city crashed in 2008 and still has not recovered.

House values have plummeted 27.6 per cent since the peak of the property boom and units have been hit even harder, battered by a loss of 41.6 per cent.

Construction had been booming to meet the demands of the region's mines, but when commodity prices fell, tens of thousands of people lost their jobs.

While some mining towns are rebounding further south, Townsville is yet to prosper again.

In a desperate attempt to attract buyers, Ms White shelled out a further $35,000 for renovations, which she will never recoup.

"We completely repainted, we put new carpet down, we put new lighting through, we put security lights on, we put up security fencing," she said.

"All your hard work and all the effort you've put in over all those years, it feels like a kick in the teeth."

Ms White shelled out $35,000 for renovations in an attempt to attract buyers. ( CoreLogic )

'We don't know if we've hit bottom yet'

Real estate agent Graham Lynham said the market "fell off a cliff" at the end of the region's mining boom.

"It's been a very slow erosion, and it's continued to erode, and frankly we don't know if we've hit bottom yet," he said.

"You often hear about the Sydney and Melbourne markets dropping 10 per cent and there's an absolute panic.

"But you feel like in north Queensland, this situation is lost on most politicians.

"I just get frustrated with the fact we're simply forgotten about."

Property sales in Townsville over the last two months paint a disturbing picture of significant price drops. ( CoreLogic )

A snapshot of property sales in Townsville over the last two months paints a disturbing picture of the significant price drops.

It includes a luxury waterfront unit that sold for nearly $240,000 less than what it had previously been bought for.

Further into the suburbs, a three-bedroom suburban home lost $159,000 at sale.

One waterfront apartment in Townsville sold for $239,000 less than its original price in 2019. ( CoreLogic )

'I don't know when I'm going to be able to retire'

The financial hit forced Ms White back into employment when she was planning to retire.

"Without that money, I have to go back to work — I'm not a young woman — I'm 65 in March," Ms White said.

"I don't know when I'm going to be able to retire, because we were counting on that.

"And when you're talking about a $100,000 loss, where do you go, what do you do?

"I get angry when I think about it now, because it shouldn't be like this."

When Ms White bought her family home, she thought the resale profit would fund her retirement. ( CoreLogic )

Government urged to boost the market

The state's peak property lobby group, the Real Estate Institute of Queensland (REIQ), has been urging the Queensland Government to boost the market by extending the first-home owners' grant to second-hand homes.

REIQ Townsville representative Wayne Nicholson has worked in the city's housing market for 49 years and stressed buyers needed stimulation to help the city recover.

"I've never seen anything as bad as what we've had — the market has been diabolical, without sugar-coating anything," Mr Nicholson said.

"If you get a $7,000 grant from the Government, you could potentially own a house in Townsville for less than you're paying rent."

A spokesperson for Treasurer Jackie Trad would not comment on whether the Government would support changing the grant.

"The existing First Home Owner's Grant in Queensland encourages investment in the new housing market and simultaneously provides support to the property and construction industry, addressing housing supply issues, and assisting first home owners by making new home ownership more affordable," the spokesperson said.