Housing Prices Are Going Down Fast

Property Prices

Wednesday, July 1, 2026, at 12:55 am

Home prices in Australia have fallen a lot in one month.

In short:

Home prices in Australia went down 0.4% in June. This is the biggest fall since December 2022. Sydney and Melbourne's prices fell the most.

Sydney and Melbourne led the fall in home prices.

What's next?

Economists think home prices will stay low because of interest rates and people feeling unsure.

Home prices have fallen a lot in the last month.

Home prices fell 0.4% in June, says a property data company.

Sydney home prices fell 1.2%, and Melbourne's fell 1%.

Brisbane and Perth are still growing, but very slowly.

A researcher says June was a turning point for home prices.

He says many things are affecting home prices, like interest rates and people feeling unsure.

He said people couldn't afford homes even before interest rates went up.

Many things have happened that have made people unsure, like interest rate rises and tax changes.

Home prices peaked in March, according to new data.

Home prices have fallen 0.7% in the last three months.

Another company says home prices fell 0.3% in June.

Sydney and Perth had the biggest falls, and regional markets stayed the same.

All the data shows that home prices are falling.

Why are Sydney and Melbourne falling faster?

Sydney and Melbourne are still leading the fall in home prices.

Darwin had the strongest growth, and Hobart also grew.

The difference is because of supply and demand.

The researcher says each city has different conditions.

Sydney has a lot of homes for sale, so prices are falling fast.

Gerard Burg says many things have combined to reduce demand.

A senior economist agrees and says some cities have very few homes for sale.

In some cities, it would only take one to two months to sell all the homes.

Low rental vacancy rates are also helping some markets.

The economist says tax changes have made the market unsure.

Sydney and Melbourne are more affected by interest rates and have more homes for sale.

The medium-sized cities will slow down, but their tight supply means prices won't fall much.

The economist thinks they will slow down, but not have a big price correction.

The last time home prices fell was in 2022 when interest rates were rising.

Are falling home prices affecting you?

Investors are pulling back because of uncertainty.

The housing slowdown is because of many problems, including tax changes.

The economist says the tax changes are a big reason for the uncertainty.

Many investors are waiting to see how the new rules will affect them.

The bank has seen a fall in investment loan applications.

The economist says existing investors won't sell quickly because of the new rules.

There hasn't been a shift to new homes yet.

The government wants to encourage investors to build new homes.

But so far, there's no sign that investors are moving to new construction.

Developers are feeling the effects of the market slowdown.

The CEO of a development company says rising costs and falling prices make it hard to build.

He says developers want to build, but it's hard with falling prices.

Construction costs have risen a lot, and it's hard to get planning approvals.

There's no confidence in the market, and many people have pulled back.

The head of development says affordability is the biggest problem.

He says people want to buy, but they can't afford it.

Wednesday, July 1, 2026, at 12:55 am

Wednesday, July 1, 2026, at 9:03 am

See more ABC coverage.

Promotion

Hörübung

Hörübung