The latest realestate.com.au Home Price Report confirms Australian home prices have declined for six consecutive months, with the usual spring selling season failing to deliver the expected price increases. Nationwide values decreased by 0.2% in September, extending a 3.3% drop since their March peak. Annual growth has now slowed to just 0.1%, according to the data.
Sydney and Melbourne continue to experience the most significant declines, with prices 5.5% and 5.7% below their respective peaks. However, economist Eleanor Creagh observed that downward pressure is now affecting other markets. Adelaide recorded the steepest monthly fall among capitals at 0.6%, while Brisbane and Perth each declined by 0.3%. Melbourne and Canberra saw reductions of 0.2% and 0.1%, respectively. Hobart’s prices remained unchanged, and Darwin was the only capital to see a slight increase of 0.1%.
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Creagh linked the slowdown to higher interest rates, which have cut into borrowing capacity and buyer demand. The spring selling season, traditionally a period of price recovery, has not provided the expected rebound. Auction clearance rates remain weak, selling times are extending, and sales volumes are below last year’s levels. These developments signal reduced buyer activity and a widening gap between seller expectations and buyer willingness to pay.
Regional markets have shown greater stability, with prices unchanged in September and still 5.1% higher year-on-year. Units have fared better than houses, with national unit prices unchanged in September and up 1.8% annually. Creagh cautioned that further declines are probable in the coming months, influenced by recent interest rate increases, tax adjustments, and persistent borrowing costs.