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  • 8 hours ago
Prospective homebuyers say they're becoming increasingly hesitant to enter the market as climbing interest rates curb borrowing capacity. With some predicting further rate pain on the way, experts warn Australia's housing market is on the cusp of a downturn.

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00:02Achieving the Australian dream.
00:06This Adelaide couple's celebrating buying a home.
00:09It doesn't have to be this hard.
00:11As interest rates climb another quarter of a percent.
00:14With the latest rise, we kind of re-evaluated our value numbers and everything.
00:19A couple of days ago we thought, OK, this is how much is going by.
00:22It's a consideration weighing on many house hunters' minds.
00:25It's going to reduce my borrowing capacity, so yeah.
00:31We don't see the prices are coming down any time soon, so it is hard to find anything in the
00:35market right now.
00:36The Reserve Bank has already lifted rates three times this year and some say further pain is on the way.
00:43As those rate hikes kick in and housing demand softens, experts say the national market is entering a downturn.
00:50We start to see that demand start to weaken as affordability constraints were already in place.
00:56And then more recently we've started to see the impact of rising interest rates once again.
01:00While growth is slowing across the mid-sized capitals, Sydney and Melbourne are already experiencing decline.
01:07They were both down about point six percent in the month of April.
01:10And for both of those cities we've seen five months of declines now.
01:14Those on the ground say buyers are becoming more hesitant.
01:18Obviously with cost of living pressures and rates going up, everything else going up as well,
01:23might just cause them to pull back just a little bit.
01:26There's still a lot of people on the market, they're just very hesitant buyers right now.
01:29And rightfully so, you have to be more fussy now when you're paying a lot more money.
01:34The credit squeeze impacting buyers and sellers alike.
01:37I think it's great for the time I know that you've already spent money on the market.
01:38If I can't affordability, like I can't affordability, like I can affordability.
01:39If you go through that's woe all!
01:41I think I want to buyability to make sure it's small,
01:42and I'm looking forwardability.
01:42You
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