Australia house prices fall 0.7% in July, since Dec 2022

Australia's housing market downturn accelerated in July, recording its sharpest monthly decline in nearly four years as falling prices spread from the largest cities to regional areas. Data released on Monday, August 3, by property consultancy Cotality showed national home values fell 0.7 percent from June, the largest single-month drop since December 2022.

The decline was led by Sydney, where prices fell 1.4 percent, and Melbourne, where they dropped 1.2 percent. The downturn also reached Brisbane and Adelaide, with declines of 0.6 percent and 0.2 percent respectively, and extended to regional markets, which saw a 0.2 percent fall, their first monthly drop since January 2023. The national median dwelling value now stands at $928,421.

Analysts attribute the cooling market to a combination of factors, including three interest rate hikes by the Reserve Bank of Australia this year, high living costs, and tax changes for property investors announced in the federal budget in May. These factors have constrained borrowing power and dampened buyer sentiment. Gerard Burg, head of research at Cotality, said there remains a significant mismatch between the pricing expectations of buyers...