The doomsayers may be predicting home-owners will struggle with rate rises but the data behind the market shows there is little sign of distress.

The number of homes listed for sale in August fell, which SQM Research managing director Louis Christopher says is an indication that owners are not under pressure to sell, despite price growth softening in some markets.

In August, residential listings fell 3.5% to 228,295 and new listings dropped 1.9%.

Christopher says higher borrowing costs may keep potential buyers out of the market but there is no sign rising rates are forcing owns to sell.

“The interest rate rises are deterring some buyers, but sellers are also being deterred from listing,” he says.

“Vendors are not really keen to list in this marketplace. There are no signs of any dramatic uplift in distressed sales.”

Analysis by comparison website Finder.com says recent rate rises have increased the average cost of a mortgage by $801 since April.