Standard Financial director Ari Levinson states investors are reassessing their methods as market swings highlight the
appeal of steady, income-generating assets. The pressure was most evident among first-home buyers who bought during the low-rate environment and were now facing greater repayments, Mr Levinson said.
“Some borrowers, particularly first-home purchasers who bought with greater loan-to-value ratios, are starting to feel the impact of the rate increases,” he stated.
“They bought when interest rates were lower and are now facing higher payments at a time when their more comprehensive cost of living is likewise increasing.”
Instead of activating a wave of forced sales, he said many families were tightening their belts.
Market leaders warn market volatility is reshaping investor behaviour, with more Australians looking to diversify beyond standard share-based portfolios.
Jellis Craig president Andrew McCann said the market was ending up being more sensitive as borrowing costs increased.
“We’re not seeing significant home loan tension, however we are seeing financial pressure affecting how individuals act in the market,” Mr McCann stated.
“It’s adding pressure to the everyday grind, which absolutely feeds into purchaser behaviour.”
Mr McCann stated increasing rates were shifting negotiating characteristics, with vendors increasingly needing to satisfy the market as borrowing capacity tightened up.
“It’s not required selling, but it is a shift in negotiating dynamics,” he said.