Firstly, the government is broke (in massive deficit) and has no hope of getting back into surplus - their center piece in time for the next election. If there were stimulus made available, Swan would have announceed it in the budget. No point giving money out later. Pumping money into the system anytime later is like giving CPR to a corpse - the well known pushing-on-a-string effect.
Also, Japanese interest rates have been at 0% for a decade. US rates at 0% effectively for the last 2+ years and house prices are at rock bottom and still falling. The bigger problem is that inflation is going through the roof, there can be no meaningful rate cut which will lead to a collapse in the AUD leading to a spike in more inflation from any imported goods and OIL.
Overseas buyers are ditching our property market now as they smell blood. Any fall in the AUD will turn the orderly exit into an overnight stampede to cut their exchange rate losses on top of PRICE falls that is already picking up in pace and magnitude.
The other thing is that the number of FHB have been exhausted by demand brought forward by about 2-3 years. They simply don't exist to fuel the bottom up ponzi scheme. Also with horror, they see FHBs who took the bait handing their keys to the banks enmasse and are barely able to get their heads above water, any would be potential sucker won't take the poison chalice so willingly (even if the banks whose balancce sheet are rapidly deteriorirating are willing to lend them).
House prices are now falling on a weekly basis at an equivalent rate as the saving for the stamp duty relief. If the state grant extension was a lure, we wouldn't have had a 42% clearance rate in Melb last week.
Kicking the can down further down the road can't prevent the inevitable. The good thing is we have reached the point of no return.
