The real estate market in Australia has been on a bit of a roller coaster ride throughout the last few years with prices rising and dropping dramatically over that period of time. Prices throughout Australia continue to fluctuate depending on the region.
Many Are Not Listing If Not Necessary
The fluctuation of prices has caused many Australians to delay putting their houses on the market, adopting a wait and see viewpoint instead. Some Australians who do not need to sell their homes are waiting to see how the market will respond before making the plunge to list it. Even though the prices in Australia continue to fluctuate some areas of Australia are showing signs of recovery and hope. Still other areas are struggling significantly.
First Time Home Buyers Provide Relief For Struggling Market
The silver lining for Australian home owners who wish to sell their property has been the First Time Home Owners Grant provided by the government. This grant has allowed a great many first time home owners to afford to purchase a home. This group of people has helped to boost the sagging housing market. The low interest rates being offered have also been instrumental in helping to stabilize the housing market in Australia.
It Might Not Be Enough
Despite the benefit that first time home buyers have provided to the slumped housing economy, some experts feel that it may not be enough to really trigger a housing recovery. So far a large percentage of the purchasing activity for new and already built houses in Australia has come from first time home buyers. Some people feel that in order for Australia to really recovery from the previous housing woes that it has experienced then other buyers will have to enter the property market soon.
Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 – 2008
Hi Sean,
Does the first time home owners grant artificially inflate the price of houses? Are the prices of the houses in that section of the property market more expensive because of the government grant? Or, is this a myth?
Due to the mining boom here in Western Australia we have been sheltered from alot of the real estate market fluctuations that have been affecting the Australian Market. I am not sure if the first home owners grant has artificially inflated real estate prices or not, but it definetly has enticed alot of people into the market who without it would not have been able too.