Australian home prices fall as experts predict slump could last a year and cut values by 10%
Australian home prices have begun to decline, with experts forecasting a potential year-long slump that could reduce values by 10%. The median capital city home price fell in May, marking the first decline since January 2025, driven by high interest rates and inflation. Auction success rates have also hit a new low, indicating a challenging market for buyers.
- ▪The median capital city home price fell in May, the first decline since January 2025.
- ▪Auction success hit a new low for the year, with only 54.5% of homes sold after being listed for auction.
- ▪Economists predict a slight fall in house prices in 2026 due to high interest rates and declining household confidence.
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Capital city house price falls in May could be the start of a year-long decline, even in smaller cities where prices boomed, Cotality says. Photograph: Dan Himbrechts/AAPView image in fullscreenCapital city house price falls in May could be the start of a year-long decline, even in smaller cities where prices boomed, Cotality says. Photograph: Dan Himbrechts/AAPHousingAustralian home prices fall as experts predict slump could last a year and cut values by 10%Buyers abandon auctions and Sydney, Melbourne and Canberra median house prices end May lower than they were at the end of 2025 Get our breaking news email, free app or daily news podcast Luca IttimaniSun 31 May 2026 11.00 EDTLast modified on Sun 31 May 2026 11.33 EDTSharePrefer the Guardian on GoogleHome prices in Australia’s capital…
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