The First Home Buyers Grant will be cut after today as the Federal Government begins the roll-back of the boost.
From tomorrow – October 1 – the grant for buyers of new homes will be reduced by $7,000, while those buying established homes will receive $3,500 less.
J.P. Morgan economist Helen Kevans believes that with the grant being phased out, building approvals and housing finance applications may experience a slight fall over the next three to six months.
“Over the next three to six months, we’ll see a pullback in some of the data that has been buoyed by the extended first home buyers grant such as building approval numbers,” she said.
Already the number of building approvals has fallen, with latest ABS figures revealing building approvals fell 0.1 percent in August, seasonally adjusted.
J.P. Morgan chief economist Stephen Walters said the figures were “no disaster” and that the “expanded grant is still there, even in scale-back form, for another three months.”