Australian Home Values Fall 0.4% in June, Steepest Drop Since 2022

Australian home values fell in June at their fastest monthly pace in three and a half years, as higher borrowing costs and tighter affordability finally cooled a long-running housing boom. Property analytics firm Cotality reported that its national Home Value Index dropped 0.4% over the month, the steepest decline since December 2022, led by the country's two largest and most expensive markets: Sydney values fell 1.2% and Melbourne 1.0%. Across the combined capital cities, dwelling values slid 1.3% over the June quarter, with Sydney down 3.2% and Melbourne 2.6%. Even so, national values remained about 7.3% higher than a year earlier, and mid-sized cities such as Perth and Brisbane continued to edge up. Analysts attributed the downturn to elevated mortgage rates, which have stretched borrowers' ability to service loans, alongside new tax measures targeting investment properties that have dampened demand. The shift marks a turning point for a market long characterised by intense competition and rapid price growth, though stretched affordability means the price falls have not necessarily made homes easier to buy for many prospective owners.