First Home Buyers Grant Reduces

At the end of this month the first home buyers grant reduces from $14,000 when purchasing an existing home to $10,500. This should not be seen as a reason for first home buyers to panic. When looked at in the cold light of day it should have little or no effect on your decision to enter the housing market. The reduction of $3,500 compared to the start of the year when buyers were often in bidding wars and / or races for contracts it may actually be a better time to buy now than it has been over the last 6 months. You will not have quite the same pressure to make a snap decision about your biggest purchase ever, and your bargaining position may be better if there are not as many other purchasers out there.
 I do believe that the next 3 months is a good time to secure your first home as there may well be a lift in prices before too long. This will mainly be due to a supply and demand imbalance. The new home starts in the Illawarra continue to be at record lows which will bring further pressure on existing houses. Basic economics states that if more people want to buy a commodity than there are of those commodities on the market, prices will rise. We are already seeing a drop in the number of existing homes on the market compared to the normal influx of spring activity so this points to price rises in the future.
 The prospect of interest rates rising again will make some people nervous however the commentators seem divided as to when & how much they will rise. It is inevitable that they will rise of course, they are at historic lows, but it is my belief that the rises will be very cautiously implemented by the Reserve Bank as they are unsure about the global outlook and will definitely not want to be blamed for stalling the Australian economies recovery.

Explanation of a Current Market Appraisal

A Comparative Market Analysis will help an Agent decide the fair market value of a home in the current market.


This comparison is called a comparative market analysis (CMA). It uses the most current and reliable market information from various sources including their Office listings and from EAC Red Square and realestateworld.com.au. The properties included in this analysis are a sampling of properties in the area that are currently for sale or that have recently sold. They provide a base line from which to begin the comparison. Other factors considered in this comparison are the property features, land size, location, amenities and the physical condition of the property.

At times, the term "fair market value" causes confusion. The definition has three basic parts – particular house – current condition – time frame (usually 30 to 90 days). Put simply, fair market value is the price at which a home will sell within a reasonable amount of time. The CMA will allow the agent to figure out, using the above information, the fair market value for the home. Remember this is just an estimation and the price could vary up or down depending on the motivation of the buyer, seller and any fluctuations in the market.

Once the price is decided on and it has been tested it in the marketplace, changing market conditions over time may require adjustments to the price to remain competitive.

For more information, please contact our office at Dougmal Harcourts Oak Flats - 02 4256 6666.

Welcome to our Blog

From time to time we will post information in relation to Dougmal Harcourts Oak Flats, properties that we have for sale and lease, market statistics and items of interest to real estate consumers in general.