First-home buyers' motivations to break into the housing market have changed slightly amid the COVID-19 outbreak, according to the latest study by Digital Finance Analytics (DFA).
According to the study, the number of first-home buyers driven by potential capital growth has increased slightly over the month, with close to 20% expecting home values to grow.
On the other hand, the attractiveness of the First Home Loan Deposit Scheme appears to have tapered off. The share of first-home buyers who said they are motivated by the scheme decreased to 14%.
The study also showed how the biggest barriers for first-home buyers changed due to the COVID-19 outbreak.
"The barriers for first-time buyers include the availability of finance. We know some lenders are asking more questions about employment and income than a month back," said Martin North, principal at Digital Finance Analytics.
Concerns about unemployment substantially rose and have now become the fourth most significant barrier for first-home buyers.
While the affordability of houses and the high cost of living remained as significant barriers, concerns surrounding these two factors moderated over the month.
"I should caution we may see sentiment swing back in the weeks ahead as things play out, but in summary for now, demand for property is sinking, availability of finance is tightening, and the spectre of unemployment is rising," North said.
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