Over the last 18 months, there has been a record rise in interest rates, and this trend is expected to continue for the remainder of 2023 and into 2024. The impact of this increase on the property market is significant and has already started to be felt.

One of the most immediate impacts of this rise in interest rates is the increase in the cost of borrowing. This means that potential buyers may find it more expensive and generally more difficult to secure a mortgage, which could lead to a decrease in demand for properties. As a result, property prices may start to plateau or even decrease. This could be particularly concerning for those who have recently invested in the property market, as they may find themselves unable to sell for the price they were hoping for.

Another impact of rising interest rates is that it can affect the affordability of existing mortgages. As interest rates go up, so does the monthly cost of mortgage repayments. This could lead to some homeowners struggling to make their repayments, which could in turn lead to an increase in defaults. This could contribute to a rise in the number of properties on the market, which could further impact property prices.

While it may lead to a decrease in demand and a plateauing of prices, it could also lead to a rise in defaults and foreclosures. In any case seeking recommendations and assistance from those in the industry to guide your decisions.

After all, it’s just a cycle and if you’re around my age or older you would have heard your parents or grandparents spruiking about 18% interest rates… and look at the value of those homes now.. as long as they were able to buy and hold on all these years.

For reliable contacts to guide your property decisions or even information around property maintenance – reach out to The Kind Agent today.