The phasing out of the First Home Owners Grant Boost and a range of other state government benefits could drive down lower-end house prices by as much as 10% in some markets according to a new analysis from CB Richard Ellis.

According to Erin Rolandsen, CBRE’s Manager of Residential Research, the May 2009 finance figures just released by the ABS confirm that the various stimulus measures to the housing market have evidently helped to increase sales activity.

The total number of dwellings purchased by owner occupiers was 29% higher in May 2009 than in October 2008 when the boost was introduced.