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Property prices in Canberra are continuing to fall with the reserve bank's latest rate rise likely to add to the trend. While experts say Canberra's housing market is now more affordable buyers are remaining hesitant.

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00:02This home is one of several in Canberra this week, with no result at auction.
00:06The agent says buyers are interested, but with prices falling and interest rates rising,
00:11they're waiting longer to make a decision.
00:14They're not ready right now and they're preparing a property of their own to sell,
00:18so this is just moving on to the next stage.
00:21We didn't get a result at auction, but we're confident we're going to get a result in the next two
00:25to four weeks.
00:26I actually really like the layout.
00:27From first home buyers to retirees, Canberrans are in no rush to buy.
00:32The dynamics of the market are kind of working in our favour at the moment.
00:36I think we're all in a waiting, sort of holding pattern to see what happens.
00:40According to data from Cotality, the preliminary auction clearance rate this week in Canberra is only 42%.
00:46That's compared to 54% last week and 68% this time last year.
00:52But the industry says figures will bounce back.
00:55That will jump up over the next two to four weeks for those properties that didn't sell at auction.
01:00So there's been a lot of property sell by negotiation after the auction date itself.
01:05Homeowners are yet to feel the effects of the latest rate rise, but the Real Estate Institute says it will
01:10impact first home buyers.
01:12I think that will have a bit of a negative effect initially until it gets absorbed by the market and
01:18people work out what they can spend.
01:20But with ACT investment slowing, the rental market remains tight.
01:25That will start to see rent rises increase, so it doesn't help renters.
01:29They're capped at a level and it puts pressure on them, unfortunately.
01:32With no rate cut on the horizon, the market is in buyers' hands.
01:36We are sold. Congratulations.
01:38Thank you very much.

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