The Reserve Bank seems set to deliver a final rate increase for the year tomorrow.

For many mortgage holders, it will compound the cost of living difficulties they face as  they get ready for Christmas. 

Everyone will be hopeful for greater clarity around rates in 2023 and it will be important  for the Reserve Bank, and lenders themselves, to take stock of what’s occurred in the  second half of the year before making any further adjustments.

In terms of market activity, the signs suggest the lead up to Christmas will be busy. 

Buyers have factored in the potential for higher repayments, vendors are increasingly  accepting of the new market, clearance rates are firm, auction volumes are encouraging  and the numbers through open homes are strong. 

This is supporting an environment of steady transactions and giving vendors who have  been taking a wait-and-see approach the confidence to proceed with a listing. Agents are  busy preparing campaigns for the new year.

Owner-occupiers are dominating buying activity though the affordability challenge  remains significant for first home buyers.

On the other hand, investors continue to show caution. Suggestions that landlords are  exiting the market now purely to reap the capital gains by selling are plainly hollow when  you consider those gains would have been considerably greater 12 months ago.

There is plenty of work to be done to repair the health of the rental market. Tenants  deserve choice, comfort and security. Landlords do too.