A perfect storm of economic factors may cause first homebuyers to enter the property market in the next 12 months.
Aussie’s founder and executive chairman John Symond said interest rates, softer property prices and potential government stimulus may make it attractive for first homebuyers.
Mr Symond has predicted the Reserve Bank cash rate will continue to drop and believes they will be 1.0 per cent lower at 3.25 per cent this time next year.
He also believes the Federal Government may yet again boost the first home buyers grant.
“Probably my cynical self says six to 12 months ahead of the next election, it would not surprise me that the government might stimulate housing by helping first home buyers and they may possibly introduce a bonus or a boost to the first home owner’s grant,” Mr Symond said.
Symond added that for first home buyers, “all the ducks [are] lining up – lower price values, lower interest rates, makes it easier to save and easier to get into home ownership.”