Australian house prices fallen 5.2% since March peak
National house prices have fallen 5.2% since March, with experts predicting further falls of 10-15%.
Australian house prices have fallen 5.2% from their March peak, with typical home values now worth about what they fetched a year ago. Prices have declined for six straight months following interest rate rises that began in February.
Experts at firms like Cotality believe an overall reduction of 10-15% is a reasonable estimate, which would be the steepest fall in any downturn since 2005. Most homeowners remain in profit: median prices have climbed 78% since 2020, so even a 15% fall would bring prices only to early 2024 levels.
The decline has hit the top end hardest, the most expensive quarter of Sydney properties has fallen 5.3 percentage points more than the cheapest quarter. For first home buyers, rising interest rates mean they can borrow less even as prices drop.
- 5.2%
- Price fall from peak
- 10-15% reduction
- Expert forecast
- 78%
- Gains since 2020
- Six straight
- Months of decline
Why it mattersFalling prices and tighter lending squeeze first home buyers caught between cheaper properties and reduced borrowing power. State governments face a hit to stamp duty revenues as transaction volumes drop.
AustraliaAustralian property owners may see their home values fall further. First home buyers find affordability barely improves despite lower prices. State governments relying on stamp duty income will see revenues shrink.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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