Interest rates and lending buffer see investors stuck on the sidelines

A PIPA national market update found rapid rate rises and the retained 300 basis point serviceability buffer were preventing many borrowers, particularly investors, from obtaining finance. PIPA drew parallels with the lending restrictions of 2017, when the share of investors active in the market fell to 22.9 per cent against a long run average near 35 per cent. Buyers agents reported softer conditions across the larger capitals and an approaching downturn in Tasmania.