 Market flooded by first homebuyers
First home buyers are snapping up bargains left, right and centre, with new figures showing a five-fold increase in the number of first home buyers entering the market.
Nearly 25,000 first home buyers signed on the dotted line this year already, which is five time the number in the last few months of last year.
The boost to the first home owner grant is thought to be the driving force, along with lower interest rates and falling property prices.
Real Estate Institute of South Australia president Robin Turner is confident the government incentives were doing their job.
"This is getting a lot of people out of the rental market," he said.
"I don't think there is any doubt that the housing market would be suffering noticeably more were it not for this injection." Since the Federal Government boosted the grant on October 14, almost 30,000 first-home buyers have been attracted into the market, according to new figures.
The majority of these, 23,983 Australians, have flocked to the market in the past two months alone. Some are calling for the government to extend the scheme which is due to end on June 30, when the First Homeowner Grant will revert back to just $7,000.
Housing Minister Tanya Plibersek said the government would "continue to monitor very closely its impact on the housing market".
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