Last week’s rate rise was received with the same enthusiasm as an uninvited guest.

Many mortgage holders will feel the extra pain this will bring. The major banks were  quick to pass the rate rise on and come mid-year, we anticipate mortgage stress to have  increased considerably.

Given the circumstances, market activity across metropolitan Sydney, including the  west, has been reasonably strong. Though rate increases can have a dampening effect,  we expect the status quo to continue in the short term.

Properties are selling at reasonable prices when priced appropriately. Vendors are  accepting good offers now as future price movements remain uncertain. 

Clearance rates are solid. Demand for houses is generally stronger than for apartments,  which may in part be because of the lack of interest from investors.

Policies which target the rights of property investors are encouraging people to invest  elsewhere, like the share market or in commercial property. 

This is bad news for tenants given the already significant shortfall of rental properties.

Last week’s announcement by the Federal Government of a $10 billion housing future  fund to increase social and affordable housing supply shows that it recognises the need  for action.

But what will be key will be how it’s implemented through the states and at the local  government level, where the planning and approval process so often proves a road  block.