Throughout most of 2008 the number of property buyers in our local market here at Real Estate Campbelltown seemed to decline further as each month went by.
Then on October 14 2008 the Federal Government announced the First Home Owners Boost scheme which effectively doubled the grant available to first time property buyers to $14,000 in the case of established houses and up to $21,000 for new homes.
The effect was not felt immediately but by the first few weeks of January we could tell things were moving. The number of buyers phoning about properties increased steadily each day until the first week of February when we were receiving almost 50 new enquiries a day.
We were overwhelmed !
Homes priced at less than $300,000 started to sell on the same day they became available. Buyers began to outbid one another for the right to sign a contract. And most of our properties were being sold for full price.
In quick time we started to ask higher and higher prices. And buyers kept buying. And now in the first few weeks of March I could confidently say prices in the lower brackets have increased by as amuch as 10% over similar properties sold only 3 months ago.
But will it last ?
If the Federal Government retracts the grant at the end of June 2009 - as they are currently saying they will - the market here in Campbelltown will probably slump and prices will retreat once more.
I think the Governement would be bonkers to curtail the grant at the end of June. Given the range of other economic problems this country is facing they would be completely irresponsible to pull the plug on the one "stimulus" measure that has worked since the Global Financial Crisis reared its ugly head last year.