For the month of September, the number of home loans approved for first time buyers surged to a new high as people raced to beat the rapidly approaching reduction in the First Home Owners Grant. Figures shared by banks have revealed a 5.1% rise in the number of loans approved for owner occupiers, as many as 65,505 new loans were issued as well.

The development has also come as a good sign for the home building sector. There was an 8% rise in the number of loans approved for people who wish to construct new properties for the month of September. The actual rise has managed to beat the 3% rise estimate pegged by economists, by a large margin.

"The demand for housing has surged since August 2008. This reflects the very favorable combination of historically low interest rates, Government incentives, strong population growth and pent-up demand for housing stock", shared Westpac's economics team.

Although the figures have come as a positive sign, experts have been quick to warn that in lieu of the current unstable market conditions, there is a possibility that a decline might be seen in the coming months.