Sluggish spring property market could be what first home buyers need

A slow start to a normally booming spring property market could be what first home buyers need to get their slice of Sydney. 

Two first home buyers battled it out at an auction for a Mortdale apartment on the second Saturday of spring.

The opening bid for the Jersey Avenue property was $480,000 with the 74 square metre, one bedroom unit, eventually selling for $541,000. 

There's been a spike in the number of first home buyers in July, since the NSW Government's housing package was introduced.

More than $18.5 million in grants and stamp duty concessions/exemptions were handed out in the first month of the latest housing affordability scheme.

In a list of the top 20 first home buyer hot spots in NSW, Liverpool came in as number one where those entering the market received $987,754 in grants/concessions.

It was followed by Spring Farm ($823,690) and Hornsby ($735,059); Campbelltown was ranked 8th ($365,893). Home buyers outside of Sydney are also purchasing their first house in suburbs like Wyong, Dubbo, Wollongong and Orange.

"It was the biggest month for first home buyer loans in NSW in 5 years," said Domain's Chief Economist Dr Andrew Wilson.

As investors retreat and Sydney's property prices flatline, this spring is expected to bring less competition.

"We really have seen that Sydney market running out of puff over the last month or so. All good things come to an end. It's a much more balanced market now. Buyers have got a better chance in the marketplace," said Domain's Chief Economist Dr Andrew Wilson.