Australia’s housing market is definitely in a downturn – but let’s put that in perspective | Hal Pawson
News Source
•Mon, 05 Oct 2026 23:38:06 GMT
📰 What Happened
Australian home values fell 5.2% in September from their March peak. That means the housing market is in a clear downturn. Opposition leader Angus Taylor called it a market 'in freefall'. But experts say the fall should be put in perspective. In dollar terms, a typical home now costs about what it did a year ago.
🔍 The Backstory
Prices peaked in March and have fallen for six straight months. The first interest rate rise in February started the slide. Tax changes on negative gearing and capital gains were announced in the May budget. Treasury expected those changes to lower prices only a little. The biggest falls have been at the top end of the market.
🎯 Why It Matters
Most first home buyers cannot afford the pricey homes seeing the biggest falls. A small drop does not fix the wider problem of high housing costs.
Australian home values fell 5.2% in September from their March peak. That means the housing market is in a clear downturn. Opposition leader Angus Taylor called it a market 'in freefall'. But experts say the fall should be put in perspective. In dollar terms, a typical home now costs about what it did a year ago.
Prices peaked in March and have fallen for six straight months. The first interest rate rise in February started the slide. Tax changes on negative gearing and capital gains were announced in the May budget. Treasury expected those changes to lower prices only a little. The biggest falls have been at the top end of the market.
Most first home buyers cannot afford the pricey homes seeing the biggest falls. A small drop does not fix the wider problem of high housing costs.