getting more desperate every day these guys, they know whats coming.
PROPERTY prices could fall and first-home buyers priced out of the market if the Government withdraws its boosted First Home Owners Grant.
The boost has attracted huge numbers of buyers, and helped prop up home prices and construction since it was introduced in October.
But housing and finance industry groups fear first-home buyers could pull out of the market and cause prices to fall further.
Since grants were doubled to $14,000 for buyers of existing homes, and tripled to $21,000 for buying new homes, there have been 29,489 claims - 5877 of them in Victoria.
The chief executive of the Mortgage and Finance Association of Australia, Phil Naylor, said high first-time buyer numbers were vital to the construction industry.
Australian Bureau of Statistics figures showed first-home owners were responsible for 25.4 per cent of all loans in December, compared with 17-18 per cent before the grant was increased.
"The proportion of first-time buyers is the highest since 2001," Mr Naylor said.
"We recognise that the boosted First Home Owners Grant is not a long-term solution but we need to work hard to secure a healthy housing market."
The Housing Industry Association is lobbying the Federal Government for continued stimulus, but acting Victorian executive director Robert Harding said first-home buyers should get into the market before the grants ended.
The Real Estate Institute of Victoria said eligibility for the grant should include first-time buyers who wanted an investment property.
"This would have the same beneficial impact on the economy and an additional one of providing more rental homes," REIV president Adrian Jones said.
He said builders and land developers would suffer if the grant boost ended.
Federal Housing Minister Jenny Macklin said the Government always intended for the boost to stop at the end of June.
"However, we're keeping a close eye on the housing market," she said.
