South Australian homeowners will be forced to tighten their belts again after the Reserve Bank of Australia (RBA) announced it would increase interest rates for the second time in three months.

The RBA increased the rate by .25 percentage points to 6% at its August meeting, following widespread conjecture from the latest Consumer Price Index (CPI) figures.

The Real Estate Institute of South Australia (REISA) said this latest rise will hit those who can least afford it.

“It's always first homebuyers, young families and battlers who are hit the hardest from rate rises, so it will be important to monitor the impact on these important groups in our community.”

Mr Sanderson added that homebuyers were already struggling with higher petrol prices and increasing food costs so this interest rate rise really was a double whammy.

“As the CPI figures indicate, households are already burdened with high petrol and food prices, so they do not need another strain on the weekly budget,” he said.

However, looking ahead, Mr Sanderson said he hoped local buyers would not be put off by the latest interest rate movement.

“We have seen time and time again that the SA marketplace is robust and resilient and housing investment is a solid long-term performer. “

“People will always buy and sell, however rate rises typically cause prices to level off as buyers need to negotiate harder and make every dollar count.