The 5% deposit scheme expansion is going to pull a lot of first-home buyers off the sidelines sooner than they expected, which naturally increases competition in the more affordable end of the market. I've seen this type of demand shift create pressure on entry-level housing before--prices can rise quickly when buyers feel like they finally have a real shot. For anyone looking to purchase under the scheme, I'd advise getting pre-approval lined up fast so you're ready before that extra demand drives up values.
As someone who's flipped over 700 homes in the Las Vegas market, I can tell you that any policy reducing deposit barriers typically causes a surge in first-time buyer activity. Australia's expanded 5% deposit scheme will likely create a temporary boost in demand for entry-level properties while potentially overheating those market segments. I've seen similar government incentives in the US create artificial price bubbles in specific property categories. While this helps some buyers enter the market sooner, it can inadvertently push prices beyond what the fundamentals support. I'm Casey Ryan, Founder of We Buy Any Vegas House (webuyanyvegashouse.com), where we help homeowners sell quickly for cash.