Affordability and loan servicing will still present challenges, particularly for first home buyers, but for people who are income secure there is an emerging acceptance this is the new normal and they want to get on with it.

The increase in activity could mean prospective buyers will have more choice and perhaps less urgency but there will still be strong buyer demand.

I’m observing the return of investors (and lifestyle purchases) might be a little slower, but we are still seeing strong demand from SMSF investors who have perhaps tapped out of capacity outside super but want to keep investing in property.

Mark Kevin, Principal and director, Mortgage Advice Bureau Sydney

Less competition

I THINK we will see a lot less competition for purchases as the interest rates have gone up so drastically and the APRA buffer increasing to 3 per cent means it is now much harder to qualify for as much lending as there was last year and in previous years.

This combined with people coming off their fixed rate that previously started with 2 per cent and now have 6 per cent at the front means their repayments on interest alone will have increased threefold, creating a perfect storm of less buyers and potentially desperate sellers.

There are possibly some opportunities for bargains for those who are able to jump in and are already prepared and approved ready to go. This is why having a broker to help navigate this uncertain time is so important.

Melanie Smith, Senior broker, Aussie Home Loans

Mixed results, mixed trends

I THINK we will see mixed results across the property market as there’s different trends within different markets.

Some price brackets and markets are feeling the pinch of interest rates more than others, with softer prices or longer days on market, yet some areas are seeing strong prices and high clearance rates.

Regardless of the issues in the global economy, some people are cashed up and waiting and ready to go, their only issue is borrowing capacity (given where rates are), however this may soon change.

The last rate rise in June only took full effect to borrowers in August and it can take an extended period of time for households to adjust their cash flows. With forecasts suggested rates may begin dropping in March, the market might start running again mid next year, but there could still be volatile economic conditions between now and then.

Theo Chambers, CEO, Shore Financial

Confidence returning

WHAT WE’RE seeing in our client behaviour and the overall Adelaide market is that confidence is coming back now that interest rates have held [for several months in a row].

Whilst we’ve got the highest interest rates since 2012 and affordability hurdles, sentiment is a powerful force. It’s influenced by perception, regardless of how the economy is faring. If people believe the market is trending in a particular way, it will influence their behaviour and activity seen recently point to an upward swing in confidence.

With that, we’ve got mum and dad investors inquiring again, first home buyers are confident to buy, people are looking to upgrade their family homes, and increasing immigration numbers. So, this spring we’re anticipating that demand for property will continue to outstrip supply.

Leah Busby, Director, Blackfish Finance