Real estate experts warned that housing market would slow down as interest rate hikes filter through to buyers. Real estate group Ray White joint chair Brian White says interest rate increases have affected activity in the housing market. The company reported a sluggish March quarter with turnover up by only eight per cent, the smallest since the global financial crisis.

The Reserve Bank of Australia (RBA) raised the cash rate to 4.5 per cent last week for a third month in a row. The hike means repayments on a $300,000 mortgage will increase by about $50 a month to nearly $2000, and economists are warning that there will be more interest rate hikes coming.

Access Economics warned homebuyers to expect further three interest rates this year. The raise is expected to take the official cash rate from 5.25 per cent to 6 per cent by the end of next year.

Experts expect interest rates hike to slow down activities in the housing market. "There will be a slower housing market in Sydney in the second half of this year, even with a normal economy," said SQM Research MD Louis Christopher. However, there is still optimism that housing industry will enjoy 5 to 8 per cent growth this year. A survey by a Bankwest and Mortgage and Finance Association of Australia showed 76 per cent of respondents believed house prices would continue to rise this quarter.

Independent interest rate monitor RateCity reported about 27,000 households have already missed mortgage repayments and thousands are expected to fall behind after the latest interest rate rise. In January, the number of securitised home loans more than 90 days in arrears has increased to a rate of 0.6 per cent, according to RateCity.