First home buyers are expected to make a resurgence over the coming 6 to 12 months.
According to BIS Shrapnel research, first home buyers should start to re-enter the market towards the end of 2010 and gather momentum in 2011.
“We don’t expect to see first home buyers return to the market in record numbers, however, within 18 months, I would expect to see more than 140,000 entering the market each year,” BIS Shrapnel managing director Robert Mellor said.
Currently, 100,000 first home buyers are joining the property ladder each year.
Mr Mellor said migrants would account for the biggest increase in first home buyer activity.
Over the past five years, Australia has experienced strong population growth – principally through overseas migration.
“Following the global financial crisis, migrants from all over the world came to Australia because they saw job opportunities that weren’t present in their own country. These migrants have now been here for a couple of years and as such, will be looking to step onto the property ladder very soon,” Mr Mellor said.