The sub-prime crisis in the United States of America has shattered the housing bubble that had been forming all over the world. Within a matter of weeks and months, the housing market had fallen through the roof and along with it fell the housing prices. People did not have money to purchase houses even at cheap rates and even those who had the money to buy houses at the prices that were existing were scared to invest all the money to buy a house as they were unsure of how things would pan out.

The sub prime crisis that affected the United States of America, also affected the credit markets and loans were very difficult to get. This vicious cycle dominated the economic scenario for quite some time and made the world look dark and gloomy. Then came the various stimulus packages of the governments of various countries. These stimulus packages had something special to offer to the smashed real estate markets and along with it came some incentives for the first home buyer.

Each government had various incentives, but most of these incentives were tax benefits for the people who were first time home buyers. Some governments gave quite a huge amount of incentives. The United States government was in the forefront by announcing advantages for the first time buyers. Even in Australia, the government of Queensland offered incentives for the people who were buying their first home. The reason for these incentives was for more people who did not have a house to be encouraged into buying a new home for themselves. This will also help to boost the real estate market.

This scheme has worked wonderfully well and there are many people who have caught this offer and bought their houses. The Queensland government's First Home Owner Grant or FHOG as it is known had incentives up to about $14,000 for those who bought their houses in the period specified by the government. Even now, the government is offering certain incentives, though the amount is not as huge as it was initially offered. All those who got the incentives benefited a great deal, but the others also have something to benefit from still.

Various governments have also given other benefits to the first home buyer to make them happy. Some of the governments have offered tax rebates for those who have purchased the houses. All these have reversed the losses suffered by many companies in the real estate sector and has changed the world for the better to an extent. These savings have also made the first home buyer richer as they have paid less and got more in return.

The reversal in the housing market and the change for the better has been good for the sector as it has made houses more affordable again and it has increased the number of first home buyers to quite a number. The stimulus packages and the incentives have also played a major role in the reversal of trends in the housing prices over the past year.