Shifting market conditions and the return of first home buyers has produced a very noticeable change in the housing stock that is being sold in residential markets around the country.
The Federal Governments first stimulus package, together with interest rate decreases are providing enough incentive for potential home buyers to jump into home ownership.
The number of first home buyers is up 17% from a year ago.
First homebuyers are beginning to recognise that the rent they are paying is very similar to the interest they would be paying if they bought the same property. More first home buyers are starting to think like investors and are considering their first home as an entry into the property market opposed to their dream home.
First home buyers are looking for homes which are in established suburbs that provide access to lifestyle amenities such as cafes, restaurants and parks. These suburbs are more likely to give them a greater level of capital growth to help them buy their dream home in the future.
Property investors are noticing that the interest rates and rental returns are almost equivalent, therefore allowing an investment property purchase that is almost neutrally geared from the day of purchase.
Over the last half of 2008 there has been a primary move in the type of stock that is occurring in the market place. Premium sales have decreased and sales of affordable housing have increased.
During the last 6 months of 2008, house sales priced between $300,000 and $500,000 accounted for 48% of all sales. There is a 5% increase compared to the same period in 2007 of these more affordable sales.
Investors and first home buyers seem aligned that now is the right time to enter or re-enter the property market.
