Suburban homeowners under increasing pressure from rate rises

Banks are predicting at least one or two more rate increases as the Reserve Bank of Australia continues its efforts to mitigate inflation. In some outer fringe suburbs where property supply is rising and house prices are falling, this could lead to substantial financial difficulty for homeowners.

Houses at Glen Iris in Melbourne Source: AAP / DIEGO FEDELE/AAPIMAGE

The simultaneous rise in property supply and fall in house prices in the outer fringe suburbs of major cities could cause significant financial hardship for homeowners.

Homeowners will be forced to make the difficult decision between holding on to property and hoping for a market recovery, or being forced to sell at a loss.

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