Victorian first home buyers exiting market

More than 53,000 Victorians used state and federal government grants to help buy their first home in 2009, smashing the previous record of 43,688 in 2001 and 41,615 in 2007.

Federal government’s boosted grants have now ended.

Victorian state government grants will end in June 2010.

First home buyers will still be eligible for $7,000 in government grants after this date.

The Real Estate Institute wants the government to extend its grants to first home buyers saying the grants and activity in the housing sectors are directly related.

"The latest ABS housing finance figures show a direct link between the assistance and the number of first home buyers," REIV chief executive Enzo Raimondo said in a statement.

"There was an 18.6 per cent drop in the number of loans to first home buyers in November.

"The number of first home buyers will continue to drop as the assistance continues to be reduced," he said.

Victorian Treasurer John Lenders said there was "little sign of Victoria's first home buyers slowing down their enthusiasm", with 24 per cent more purchases in December last year than December 2008.

Source: The West Australian