NERVOUS times lay ahead for mortgage holders after the Reserve Bank increased interest rates for the first time in more than 11 years.
The 0.25 per cent increase translates to a $65 per month increase on repayments for an average $500,000 loan.
Kadina-based mortgage broker Carlee Horsell said her phone had been ringing off the hook since the announcement.
“The rate rise had been expected but how many more rises we see over the next 18 months is anyone’s guess,” Mrs Horsell said.
“There’s so much going on within the economy, and house prices have been out of control, that something needed to change.
“We think rates will probably continue to go up but it’s really hard to tell what is going to happen going forward.
“We’re a long way off the 15 per cent rates of the 1980s though.
“What I’ve seen through my clients has been a trend in recent times of people having to offer significantly more than the asking price to secure a property.
“I’m hoping that trend changes and we can get back to a stage where buyers have more negotiating power.”
Ray White Yorke Peninsula agent David Bussenschutt said the rise will not have much of an impact on the real estate market.
“I think supply and demand are having a much bigger impact on the housing market than interest rates,” Mr Bussenschutt said.
“We’re starting to run out of stock and we won’t be laying anyone off today.
“I sold a place in Kadina before the sign went up.”
Elouise Fehring recently bought a property near Wauraltee Beach with her husband Max.
Mrs Fehring is currently on maternity leave and said, while they would largely be living off one income for a little while, they were in a better position than their Adelaide counterparts.
“Max and I are pretty privileged, we’ve got job security, we’ve got accommodation security and our mortgage is not a lot compared with our friends in Adelaide,” she said.
“But it’s not just about us, it is about our community and the broader community and it will be interesting to see how this all plays out.”