“People hesitate to lock themselves in for a long time with the higher interest rates,” Ede’s Real Estate licensee, Brian Cook said.

Mr Cook said he has noticed the market slowing especially for first time land owners which the rise has directly affected.

“People selling are taking a reduction on the price of their houses so they are not stuck with them if interest rates continue to rise,” Mr Cook said.

The property market in Tea Gardens Hawks Nest is also feeling the effect of the interest rate hike although in a different way.

The majority of the properties for sale in the area are brought by investors looking for a holiday property.

With the rate increase it is harder for people to buy a second house, especially if they don’t know what will happen in the future.

“There is uncertinity in the buyers minds,” Hawks Nest First National sales manager John Rumble said.

Mr Rumble also agreed that investors with a financial reason for selling are decreasing the price of their properties to meet the market. With interest rates expected to keep increasing real estate agents have also said younger families are struggling to save for their own home.

Many families are looking outside Tea Gardens Hawks Nest for their first homes because they are unable to afford the repayments on a property in the area.