Regardless of the scaling back of the FHOG, first home buyers are still active in the market, research from RAMS has found.
According to the mortgage provider’s First Home Buyers’ Pulse Check, less than 40 per cent of potential first home buyers will actively try and purchase a property before the FHOG boost ends on 31 December 2009.
RAMS Head of Brand and Marketing Lynne Wyatt said the boost to the grant was inevitably a catalyst and an enabler for many Australians to get a foot on the ladder but healthy demand from first home buyers is expected to continue for the rest of the year and well in to the next.
“We believe that in 2010 between fifteen and twenty per cent of our customers will continue to be first home buyers,” Ms Watt said.
According to the Pulse Check, there is real resilience amongst first home buyers and the majority will still look to buy even if interest rates continue to increase.
“In the first Pulse Check report, released in April 2009, seven out of 10 first home seekers said they had been influenced to look for their first home by the FHOG boost. The findings of the second survey indicate that the FHOG is not as influential as it was earlier this year,” Ms Watt said.