Wagga's housing market continued it's upward trajectory in May with CoreLogic data showing prices spiked 3.6 per cent in just one month, and increasing 12.2 per cent over the year.

Real estate insiders say the historic price hikes make it hard for buyers in Wagga, and have welcomed the government's latest steps towards changing property fees which they say are keeping people out of the market.

The NSW Treasury has proposed replacing one-off stamp duty fees for live-in residential homeowners with an annual fee comprising $400 and a 0.3 per cent land value tax. Under the plan, first home buyers who are currently exempt from stamp duty for properties under $600,000, will receive a $25,000 grant to make up the lost concession.

The proposal to reform stamp duty has the overwhelming support of the public according to a progress report released last week.

In Wagga, One Agency's Holly Newbigging said a reform to the huge fee would be a serious boon for the market.

Ms Newbigging said without the added thousands on every transaction, mobility for people to upsize and downsize would improve which would free up more property on the low-stock market.

"Stamp duty is a huge burden and it limits what people are going to buy," she said. "When you're spending over the $500k mark, the stamp duty is huge and it really needs to be looked at. Anything the government can offer to help would be welcome."

Raine and Horne's Grant Harris agreed changing stamp duty would be a huge bonus to buyers in the Wagga market.

"The stamp duty has been an archaic tax and I think reform, pending the final details, is a good thing," he said. "I would be supportive of a new way of fairly taxing the transaction."

Wagga mortgage broker Dragan Disljenkovic said the change to the tax would help facilitate deposits in the short-term, but warned it was unlikely to have a long-term impact on Wagga buyers.

"The change would give you additional funds towards the deposit and help in the immediate term," he said.

"Long-term it would probably stay the same. Regardless if they get that extra money, it's their ability to service the property in rates and repayments that will come into play, and their loan would stay the same."

According to the government progress report, while support for change is high, many remain uncertain about the proposed replacement fee which they fear will become more expensive over time.

Ms Newbigging said the proposed change was not a long-term solution for home buyers trying to get enter the market.

"To me that [ proposal] is a short term fix," she said. "Over the long term you're better off paying the one-off fee, but the size of [stamp duty] needs to be looked at and reduced."

Mr Harris agreed that the reforms proposed are not a complete fix, arguing more grants won't help first home buyers.

"Grants give people access into the market but they also stimulate the market and drive costs up," he said.

He predicted investors would be the biggest winners in the changes, though investor-owned residential properties would need to pay $1500 a year and a 1.1% land tax under the proposal.

"The reforms will take away barriers for investors, they'll get in without the upfront cost of stamp duty," Mr Harris said. "It will probably stimulate people to want to invest."

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