The Housing Industry Association says new Federal reforms to home deposits will open up access to the market and drive up demand.
The Federal Government this week announced first home buyers of all income levels can now purchase a home with only a 5% deposit. In the event of a default, the Government will step in.
But there’s criticism the scheme will inflate property prices.
The Association’s Hunter Executive Director Craig Jennion says he’s not concerned.
“You need to understand the difference between the real estate market and the housing market and they are very much linked,” he said.
“The key is that in the very short term, yes, we will see a slight increase as there are more people out purchasing homes.
“But the great news is that over time we’ll actually see an increase in supply and as a result we’ll see prices stabilise and hopefully actually start to fall,” he said.
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| Craig Jennion. Via LinkedIn |
