House prices fall in four Australian capital cities

House prices fell in four Australian capital cities in June, according to data released Wednesday by Cotality. Sydney median prices dropped 1.2 percent for the month and have fallen $48,000 since January. Melbourne prices fell 1 percent, their largest monthly decline since August 2022.

Price changes by city Sydney median prices now stand $3,000 above June 2025 levels. Melbourne median prices sit $7,000 below the same point last year. Canberra prices are $8,000 below January levels but remain $25,000 above June 2025. Adelaide prices rose for 15 straight months before declining in the second half of June.

Perth and Brisbane recorded smaller monthly gains of 0.7 percent and 0.3 percent respectively after double-digit annual increases. Both cities saw May price estimates revised downward by more than $10,000.

Sales and auction activity More than half of homes listed at auction failed to sell, with national clearance rates below 50 percent since late May. Total capital-city sales in the three months to June fell 16.2 percent from the same period last year.

Properties priced under $1 million continued to sell, while higher-priced homes took longer to move. Interest rates have risen three times since February and tax changes have reduced investor borrowing capacity. The Reserve Bank left rates unchanged in June after noting the rapid slowdown in its published minutes.

Cotality stated the most likely path is further loss of momentum rather than a sharp national correction.