Real estate agents are starting to see an increasing number of first-home buyers shun the government's $14,000 boost in the hope that prices will fall in the future.
Some potential first home buyers are now of the opinion that they can save money by waiting until the grant expires at the end of the year and buy after prices drop.
Data from the Australian Bureau of statistics showed that the number of people taking up the first home owners grant in NSW dropped from over 6,900 in June to just over 6,600 in July.
“The problem is that prices have run up so much in the last six months – to the tune of 10 or 20 per cent – that some first-home buyers think they may as well skip the grant and wait for prices to be more realistic,” Belle Property Wahroonga principal Ian Clarke told The Sun Herald.
The median Sydney house price has increased by 4.8 per cent in the 12 months to 30 July 2009.
Figures from RP Data showed that Sydney’s median unit prices were up 5.2 per cent for the first half of the year.