REAL estate experts are bracing for the housing market to finally slow down, as the effects of the latest interest rate rise filters through to buyers. Despite six interest rate rises in the past eight months, the demand for housing has outweighed the extra costs. Buyers have continued to push house prices up to 20 per cent higher in many cities in the past year.
However, evidence is now starting to show that a slowdown is under way.
Ray White, reported a sluggish March quarter with turnover up only 8 per cent compared with last year. This is the smallest increase since the global financial crisis and the reduced activity has continued in to April, Ray White joint chairman Brian White says.
“Judging by our April results, it looks as if the interest rate increases are having an impact on activity,” he says. “With the additional interest rate hike, it would be the first time that the Australian market has not shrugged off the pattern of increases in the past.
“At last, it would appear that the ambition of the Reserve Bank to slow down the residential activity has been achieved.”