The Reserve Bank’s second hike in as many months is seen by economists as a positive sign that Australia’s economy is on the rebound after avoiding recession and reflects the growing confidence that the global financial crisis is now a thing of the past.

Although small business and home owners in metropolitan areas are expected to feel the effects of the rate rise, the Lithgow market isn’t as sensitive.

Jamie Giokaris of LJ Hooker Lithgow said the Lithgow housing market had remained constant for the past four years with the latest rate rise unlikely to have a major impact on local property prices.

He said that although he certainly isn’t a finance expert he wouldn’t expect a knee jerk reaction of people selling their houses but expects the market to remain bouyant.

He said there will be local families feeling the effect of the hike but at this stage the Lithgow market remains confident.

Jamie said while local industry such as the coalmines and power stations continue to remain strong, the housing market will reflect this.

“Our market has stayed even during a period of interest rate rises and we hope to see some investors returning while confidence is there. An extended flat period could spur homebuyers on keen to take advantage of the low rates.

“Our rental market is as strong as it has been for some time and first and second homebuyers are being sensible and not extending themselves financially.”