FIRST home buyers captivated by the lure of $21,000 in new government grants have stormed builders and real estate agents in search of bargains.

Large numbers of first homebuyers are expected at inspections on the weekend.

Real Estate Institute of Queensland chairman Peter McGrath said he had spoken with a half dozen agencies who said they were getting more inquiries about homes, especially at the lower end of the market.

The mini-boom was the most tangible sign yesterday that Prime Minister Kevin Rudd's $10.4 billion economic rescue package was taking effect.

Apart from cash incentives to families and older Australians, the package doubled the first home buyers grant to $14,000 for existing homes and trebled it to $21,000 for new homes.

Renewed interest came as one of the NSW's largest developers vowed not to increase property prices to take advantage of cashed-up home buyers returning to the receding property market.

Landcom marketing general manager Robert Sullivan said they would continue offering up to $16,000 worth of rebates on new house and land packages on top of the increased first home owner grants - giving up to $37,000 extra cash to new buyers.

"We will not be making any changes to rebates we've currently got on the market," Mr Sullivan said.

"Customers out there have been ... looking around and shopping around for the best deals. It would be very dumb of the market to pass on the new grants in a price increase."

For a year developers have been offering their own cash rebates to home buyers to stimulate the market and with Mr Rudd's increased grants, buyers in two minds have been spurred to act.

Cornish Group sales manager Colin Lake, offering 1200 house and land packages in Camden's new Spring Farm estate, said they had been flooded by approaches from first home buyers.

"We've had an instant response in the past two days. The phones have been running hot with younger buyers asking how they can make it work.

"First home buyers have been coming into our office, which is unusual as it's usually only second and third home buyers who can afford a new home. But the $21,000 is effectively the full 5 per cent deposit on a $420,000 package."

Mt Annan couple Greg and Melinda Sinclair have wanted to buy a home for several years, but the trebling of the grant made the decision for them. The public servant and at-home mum to Cameron, 4, and April, 2, are sick of rising rents and want their own place.

"Between the first home buyers grant and interest rates starting to go down, we are finally able to buy a place now," Mr Sinclair said.

"And Clarendon Homes are also giving us another $7000 rebate, so it's $28,000 we will be saving.

"I think a lot of people will jump into the market thanks to the grant, whether the houses are new or used."

RP Data researcher Cameron Kusher is expecting more people will be going to open houses on Saturday and testing the waters.

"It certainly won't be a case of a huge number of sales and a significant decline of total stock on the market," Mr Kusher said.

Sale volumes and auction clearance rates have been well down over the past few months.

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