Assessing Policy Outcomes through an Evaluation of House Price, Time on Market and the Relationship between Advertised and Transaction Price

In the past decade governments in Australia, both state and federal, have provided assistance to first home buyers in an effort to improve the availability and the affordability of housing as well as to stimulate interest in the housing market. Subsidies and tax breaks have been offered which are anticipated to encourage borrowing and to increase market activity. This study considers the effectiveness of such policies through an analysis of price, the time on market of a property before sale and the relationship between advertised price and actual transaction price for periods associated with the introduction of such subsidies. The study uses both descriptive and statistical analysis to quantify the effectiveness of the policy in terms of improving housing affordability and increasing market activity.