The federal government’s HomeBuilder subsidy had a tight 31 December deadline to qualify for $25,000 grants to underwrite the construction of new homes or major renovations.
For all intents and purposes, it was a stonking success, resulting in an unprecedented 92% rise in new home sales in December as buyers rushed to meet the deadline.
However, the problem with these types of schemes is that they typically pull forward demand, leaving a big demand hole once the subsidies expire.
