will further slash the borrowing and spending power of buyers. It marks the third consecutive rate rise and the most aggressive tightening of monetary policy since 1994.
“We probably will see prices fall more across the upper end of the market, whereas the middle to lower end will probably see demand somewhat insulated,” he said, noting eroded borrowing capacity would skew buyer demand to more affordable price points. Though the upper end of the market was leading the downturn, buyers at the extreme top of the market were not as sensitive to higher interest rates and affordability constraints, Lawless said.
House prices across the Northern Beaches had pulled back five to 10 per cent, said Marika Martinez, of Sydney Northern Beaches Buyers Agents, and vendors had to meet the reduced borrowing capacity of buyers. Prices had shot up fast amid the flight to lifestyle locations during the pandemic and were now correcting.
Equilibria Finance managing director and mortgage broker Anthony Landahl said clients with pre-approvals were deciding to wait and see how interest rates and property prices fared.