It’s only the very beginning of a new financial year and already some perspective is needed.

CoreLogic numbers released late last week show that nationally, home values are down  0.2% for the June quarter, and 2.8% in Sydney.

Despite all the doom and gloom, the numbers show only a relatively small correction.

And this mild correction was expected. During last quarter, the market had been preparing itself for interest rates to rise and tomorrow, we are likely to see the third rise  in as many months.

Should the Reserve Bank increase rates as expected, it will be interesting to see by how  much, although some financial institutions have already pre-empted the expected rise.  Significantly, too.

Rates traditionally have a dampening impact on prices and this appears to be playing  out again.

Most mortgage holders will have expected this and the buffers applied by lenders should  see most cope.

Of course, higher borrowing costs when combined with the rising cost of living generally  will put increased pressure on some people and families.

Current subdued real estate market conditions can be expected to continue through the  winter lull.

The REINSW Annual Roadshow wraps up its regional rounds this week with visits to  Albury and Wagga.

In addition to discussing the issues of housing supply and affordability with locals, we’re  expecting plenty of questions about the recent budget reforms and what they’ll mean for  first home buyers.