Despite the FHOG being gradually reduced recently, auction clearance rates were still holding up with first home buyers trying to secure the benefit during the last week of the grant. Clearance rates for Sydney Melbourne and Brisbane last week were 67%, 86% and 67% respectively.
Analysts feel that house prices will not be significantly affected as a result of the gradual withdrawal of the grant. The winding back of first home buyers will see investors returning into the market. There may be some minor softening in prices but it will not be significant.
By far the greatest impact of the FHOG in New South Wales have been in the western suburbs of Sydney. Please refer to the list of the First Home Owner benefits – Top 20 postcodes.