Australian home values decline sharply in August
Australia’s house price correction steepened in August. According to Cotality’s daily dwelling values index, which tracks value changes across Australia’s five major capital city markets, home prices declined by a hefty 1.2% at the 5-city aggregate level in August. As illustrated in the chart above, declines were broad-based, with significant losses reported across the five The post Australian…
Australia's housing market experienced a sharp correction in August, with home prices falling by 1.2% across the five major capital cities, according to Cotality's daily dwelling values index. The decline was widespread, with significant losses reported in Sydney (-4.1%), Melbourne (-3.6%), Brisbane (-1.6%), Adelaide (-1.3%), and Perth (-1.2%).
Overall, values at the 5-city aggregate level dropped by 3.0% for the quarter, with Sydney (-4.1%) and Melbourne (-3.6%) leading the decline. If the current pace continues, the record downward trend could be broken in the first quarter of 2027. Mid-sized cities have shown smaller losses so far, but could experience accelerated declines as the supply of homes increases and demand softens.
The Reserve Bank is expected to raise interest rates soon, which could further depress home prices. The housing market's predicament is clear: prices surged beyond affordability levels, and now the Reserve Bank's rate hikes and government tax changes are poised to deliver one of the most significant price corrections in decades.
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