First home buyers may have gone off the boil but other segments are hotting up.

The federal government’s boost to the first home owners grant has officially been wound back – and investors are preparing to flood the market.

Figures from RP Data revealed a decline in property market activity following the removal of the boost, from a peak of 116 points down to around 110 points in less than two weeks.

But while many attribute the fall in activity to the winding back of the grant, RP Data’s head of property research Tim Lawless said it was more likely to be symptomatic of the seasonal influence of Spring – a traditionally strong period for property sales.

“The rapid acceleration of the Index reflected the Spring scramble as agents hurried to prepare properties for the Spring selling season.  With the selling season now well underway agents are much more focused on selling rather than listing,” he says.

Mr Lawless says he does not expect the housing market to experience a further dramatic fall in activity, with investors gearing up to re-enter the market.

According to Aussie Home Loans founder and executive chairman John Symond, investors have been patiently waiting on the sidelines for the first home owners grant to taper off.

Aussie has recorded a 32 per cent rise in enquiries from investors via the Aussie website, and Mr Symond says increased consumer confidence, high rental yields and a continuous shortage of housing were combining to create “perfect conditions for property investors”.

A recent PRDnationwide survey of 764 investors found that almost 90 per cent intended to purchase property in the next two years, with 70 per cent looking to buy interstate and 66 per cent looking for long-term capital growth.

The majority of respondents said they would be looking at properties priced at between $300,000 and $450,000, with an annual rental return of between 4 to 5 per cent.

Prices and indicators

Latest figures

SYDNEY

Median house price: $594,704

Quarterly growth: 2.61%

Annual growth: 5.53%

Average annual growth: 2.42%

Median weekly rent: $502

Gross rental yield: 4.54%

Median unit price: $443,120

Quarterly growth: 0.78%

Annual growth: 6.12%

Average annual growth: 2.36%

Median weekly rent: $480

Gross rental yield: 5.71%

MELBOURNE

Median house price: $482,299

Quarterly growth: 3.66%

Annual growth: 6.71%

Average annual growth: 6.36%

Median weekly rent: $356

Gross rental yield: 4.05%

Median unit price: $381,967

Quarterly growth: 2.89%

Annual growth: 7.58%

Average annual growth: 4.89%

Median weekly rent: $333

Gross rental yield: 4.66%

BRISBANE

Median house price: $459,571

Quarterly growth: 1.20%

Annual growth: 1.83%

Average annual growth: 10.29%

Median weekly rent: $398

Gross rental yield: 4.56%

Median unit price: $349,666

Quarterly growth: 5.01%

Annual growth: 6.37%

Average annual growth: 10.57%

Median weekly rent: $343

Gross rental yield: 5.45%

ADELAIDE

Median house price: $418,555

Quarterly growth: 1.02%

Annual growth: 1.90%

Average annual growth: 7.27%

Median weekly rent: $342

Gross rental yield: 4.30%

Median unit price: $350,673

Quarterly growth: 0.61%

Annual growth: 3.96%

Average annual growth: 9.43%

Median weekly rent: $324

Gross rental yield: 4.88%

PERTH

Median house price: $487,822

Quarterly growth: 0.82%

Annual growth: -1.01%

Average annual growth: 10.90%

Median weekly rent: $400

Gross rental yield: 4.29%

Median unit price: $458,258

Quarterly growth: -0.92%

Annual growth: -3.08%

Average annual growth: 11.99%

Median weekly rent: $427

Gross rental yield: 4.85%

DARWIN

Median house price: $514,417

Quarterly growth: 3.82%

Annual growth: 17.71%

Average annual growth:  15.64%

Median weekly rent: $606

Gross rental yield: 6.38%

DARWIN

Median unit price: $367,030

Quarterly growth: 10.05%

Annual growth: 24.23%

Average annual growth: 13.12%

Median weekly rent: $427

Gross rental yield: 6.11%

CANBERRA

Median house price: $506,898

Quarterly growth: 3.85%

Annual growth: 7.11%

Average annual growth: 7.17%

Median weekly rent: $495

Gross rental yield: 5.18%

Median unit price: $389,119

Quarterly growth: 1.66%

Annual growth: 7.43%

Average annual growth:  8.47%

Median weekly rent: $412

Gross rental yield: 5.71%

Source: RP Data

Mortgage indicators

LENDING FOR HOUSING – SEASONALLY ADJUSTED

July 09: $16.884 billion

Change from June 09: Decreased by 1.7%

Change from July 08: Increased by 26.11%

AVERAGE NEW OWNER OCCUPIER HOME LOAN

July 09: $266,900

Change from June 09: Increased by 0.9%

Change from July 08: Increased by 6.9%

FIXED-RATE LOANS AS PERCENTAGE OF OWNER OCCUPIER LOANS

July 09: 7.2%

Change from June 09: Down 0.8%

Change from July 08:  Down by 1.6%

FIRST HOME BUYERS AS PERCENTAGE OF OWNER OCCUPIER FINANCE COMMITMENTS

July 09: 25.7%

Change from June 09: Down by 1.4%

Change from July 08: Up by 7.1%

Source: ABS

Building approvals

TOTAL DWELLING UNITS APPROVED

August 09: 12,126

Change from July 09: Decreased by 0.1%

Change from August 08: 0.0%

TOTAL PRIVATE SECTOR HOUSES APPROVED

August 09: 8,880

Change from July 09: Increased by 3.1%

Change from August 08: Increased by 10.8%

TOTAL PRIVATE SECTOR OTHER DWELLINGS APPROVED

August 09: 2,625

Change from July 09: Decreased by 11.7%

Change from August 08: Decreased by 32.3%

Source: ABS