The first home buyers grant has lifted the purchase of new homes by 10 per cent in its first month causing pressure on Kevin Rudd to extend the first-home buyers grant beyond June 30.
The Coalition warned that although figures released earlier this week showed the increased grants were boosting the sale of new homes the measure was not delivering a long-term boost to the market.
Australian Bureau of Statistics figures released earlier this week showed that the number of new houses purchased by first-home buyers jumped by almost 10 per cent between October and November. Unfortunately these figures were insufficient to offset an overall decline in the housing market, which slowed by about one per cent from October to November.
Scott Morrison opposition housing spokesman warned that the housing sector would need more than a short-term stimulus to turn around a 21.8 per cent decline in housing finance for the construction, and purchase of new dwellings in the first 12 months of the Rudd Government.
He went on further to say that we still had a long way to go and must ask ourselves the question: What happens once the stimulus is removed?
The first-home owners grant is not a long-term solution as it only provides a stimulus at the margin while key issues necessary to restore confidence and growth are being overlooked.
John Kolenda Loan Market Group director said the increased grant due to expire on June 30 should be extended for a further six months. He further added that there was very little interest shown from first-home buyers for most of 2008, but now brokers and property-related websites, were being flooded with interest from them.
For the first time in many years there are first-home buyers out there willing to commit.