As documented here and elsewhere many times previously, first time buyers never really disappeared.
Anyone who works in the Sydney property market would know that many of those so-termed "speculators" have in fact been first time buyers themselves, oftentimes choosing to buy an investment property as their first step on the housing market ladder.
So much for the greedy old farts "devouring their young"!
There was also a theory doing the round some years ago that the disappearance of the first homebuyer could cause the property markets to collapse in upon themselves, as the base of the real estate pyramid dissipated.
However, these shifts being seen in our capital city markets may yet have unforeseen consequences.
Certainly it can be said that countries with high home ownership rates have also historically been more prone to boom-bust cycles, for where the status of home ownership is considered to be an essential, would-be buyers can on occasion stretch themselves to extreme lengths.
Simply because within an illiquid market it may be another month or three before they have a further opportunity to buy, and in a hot or rising market environment they may fear paying $5,000 more for the privilege of so doing.