A recent survey has shown that it is the best time in seven years for first home buyers to get into the property market.
According to the Housing Industry Association Commonwealth Bank housing affordability index a combination of static house prices and low interest rates have improved housing prices.
The index for first home buyers rose 22.3 points in the March quarter to 175.8 points. A report published yesterday revealed that housing affordability has reached levels last seen in 2002. The index was 69.6 higher than in the March quarter of 2008 with an improvement of 66 per cent.
These index results have come as hundreds of first home buyers are keen to enter the market boosted auction clearance rates across the nation.
This motivation is mainly due to the Rudd government's decision to extend their boosted first home buyer's grant boost in full until September. Despite warnings from the property market experts, the increased grant has artificially inflated prices at the lower end of the market.
Real Estate agents have confirmed that there has been a dramatic increase in the number of properties being put up for rent in some of the wealthiest suburbs.
This is due to fears about unemployment as owners of mansions try to avoid having to sell during the recession. As a result of an oversupply of properties to rent in prestige's suburbs, rents have fallen by 25 per cent and have forced landlords to wait longer before finding the right tenant.
Chris Lamont chief executive of HIA said that despite the current economic conditions "there has never been a better time to enter the property market". Mr. Lamont also stated that the grant had been highly successful in creating and securing jobs in the residential construction sector.