First home buyers dream market as house prices continue to fall

First time home buyers have a dream market and finance situation, if they are in a position to take advantage of it.
Firstly, the first home buyers grant has been doubled to $14,000 for established homes and trebled to $21,000.
Then the interest rates have fallen 4 percent in six months.
The icing on the cake for first home buyers is that house prices are continueing to fall as home for sale stay unsold.
In fact house prices and have have fallen for the third successive quarter.
The national house price index fell 0.8 per cent in the December quarter, the Australian Bureau of Statistics said.
This compares with a downwardly revised 2.4 per cent fall in the September quarter, and a 0.8 per cent fall in the June quarter.
In the year to December, the house price index decreased 3.3 per cent, compared with an annual rise of 1.6 per cent in September.
Economists had expected a fall of 1.0 per cent for the December quarter.
Prediction: House prices to fall 10 per cent in 2009
JPMorgan economist Helen Kevans said the Federal Government's boost to the first home buyer grant had slowed down the pace of house price decline in the December quarter.
First home buyers are the growing market segment in a shrinking market
"First home buyers accounted for 23.6 per cent of all home loans in November, well above the 19.5 per cent recorded in October, and the highest level since early 2002," Ms Kevans said.
"This may have provided some support for house prices late in 2008."
Ms Kevans said Australian house prices would fall by 10 per cent in 2009.
This would be a lower pace compared with other countries because of Australia's housing shortage and growing intake of skilled migrants.