Buy a House Now - Tomorrow could be too late

If you are a potential new home buyer who hasn't owned a home before in Australia, the you will be eligible for the $14,000 First Home Buyers Grant until 30/06/09. On new homes that increases to $21,000.

We are predicting a noticeable increase in real estate sales in the sub $400,000 range between now and Xmas, with sales levels building over time and reaching a peak in June 2009. Our rational for that is that many home buyers have been sitting on the fence until now wondering whether to buy or wait. The increased grant reduces to former levels on 30/06/019 so those who have procrastinated will surge into the market in June 2009 to make sure that they get the grant.

Now we have a situation where interest rate are coming down fast, supply is good so prices are not galloping upward, the government is giving you all the deposit that you need, and state governments have recently reduced their stamp duty costs in some cases to zero up to $500,000. All of that spells a powerful incentive to buy within the next 8 months. However those buyers who wait until 2009 will face a reduced supply, and you know what happens when supply is reduced whilst demand has increased. You guessed it, prices in the lower end will jump about $20,000 or more wiping out the value of the home buyers grant if you move too late.

But of course life is like that, those who act quickly prosper, and those who dither will pay for their indecision. Others who don't move at all will get left behind again.