The current boom in the lower end of the housing market will filter through to the more expensive properties over the next three to six months, according to the Real Estate Institute of NSW (REINSW).
Steve Martin, REINSW president, said that the heightened first homebuyer activity fuelled by the recent government incentives has underpinned the NSW residential property market and will continue to do so.
"Early signs in 2009 of a strong return to the residential market by buyers will definitely continue as we head towards the end of the financial year," he said.
"The Federal Government's stimulus package combined with the lowest interest rates since the sixties have re-energised the market. What we are seeing now as a direct result of interest rates and the rental accommodation shortage is that investors are coming back into the market place. With interest rates likely to fall, we will see the mums and dads and private investors playing a significant role in our residential recovery."
Martin also predicted a rosy outlook for the commercial property sector due to the lower interest rates and favourable foreign exchange rates.