Australia housing prices face significant downturn

The Australian housing market is experiencing a significant downturn, with property prices falling after decades of consistent growth. According to data from CoreLogic, the average house price across Australia in September 2026 was approximately 899,000 AUD, representing a 5.2% decrease from the peak in March.

Major metropolitan areas like Sydney and Melbourne have seen declines of 6-7% compared to the previous year. Some financial institutions and economists, including Shane Oliver of AMP Limited, suggest that total price drops could reach as high as 15%.

This decline is driven by high interest rates, which are at a 15-year high, and tax reforms aimed at limiting residential investment. Market activity has also slowed, with the number of properties up for auction dropping by half and successful sale rates falling below 50%.