First home buyers are still helping to strengthen the property market and should not be underestimated, according to a leading property expert.
Ken Morrison, executive director of Property Council NSW says first home buyers will continue to be a large part of the property market, despite the Federal Government beginning to wind back its grants.
“They will be a force. Most people are experiencing some declines in the first home buyer’s market, but obviously that market will still exist. And you’ll just have to wait and see what the drop in the grants to their pre-stimulus levels does, in terms of an impact on the market,” he said.
The comments come as figures from the Australian Bureau of Statistics show the proportion of loans given to first home buyers was 26.1 percent in September, compared to just 18.7 percent in October 2007.
In addition, auction results remained strong over the weekend in both Sydney and Melbourne, fuelled by first home buyers.
According to Real Estate Institute of Victoria chief executive Enzo Raimondo, Melbourne recording a 27th consecutive weekend with clearance results over 80 percent, while in Sydney clearance rates reached 68 percent, with sales totalling $122 million.
Loans to first home buyers jump sharply