SA's first homeowners grant slowdown 'mirrored' in other states
The decision to remove the first homeowners grant by the federal government may have had a profound ...
The decision to remove the first homeowners grant by the federal government may have had a profound impact on the South Australian residential property market.
According to the state's finance minister Michael O'Brien, the news of the fund's termination may have caused something of a housing spike in 2010.
"There was a reasonable 'pull forward' effect where people made purchase decisions that they may otherwise have deferred," O'Brien told Adelaide Now on December 31 2011.
In turn this caused a mass of grant applications to be paid out in the months following the announcement - with 8,135 claims in 2010 as compared to 6,562 last year.
The 19.3 per cent difference between the two figures has been a common feature across many other states, with a combination of factors influencing the number of first homebuyers.
O'Brien asserted: "There is also general softness in the housing market which is reflected nationally in construction starts and a general fallback in property values.
"What we're seeing in SA is pretty well mirrored in the other states."
However, the slowdown in property turnovers could see vendors begin to reduce their asking prices as their expectations fall back into line with what the market is willing - and capable - of spending.