Real estate professionals are confident that demand for property will remain strong even if first home buyer activity drops off when the beefed-up grant is phased out.
The proportion of first home buyers in the market rose to an all time high of 29.5 per cent in May – the highest level since the ABS record began in 1991.
But despite the surge in first home buyer activity, Druitt and Shead First National executive director Roger Shead said the industry would continue to remain strong and grow long after the government grant came to an end.
Investor confidence has begun to return to the market at just the right time, allowing for a smooth transition and a stable market, according to Mr Shead.
Mr Shead said investors combined with trade-up buyers would help keep the real estate market kicking along.
Data released today by Australia’s largest mortgage brokerage Australian Finance Group (AFG) would tend to support Mr Shead’s comments.
The AFG Mortgage Index shows that in August 2009 up-graders accounted for 22.8 per cent of all mortgages sold. This compares to a figure of just 14.3 per cent in February 2009.