Australian home prices fall as experts predict slump could last a year and cut values by 10%

Buyers abandon auctions and Sydney, Melbourne and Canberra median house prices end May lower than they were at the end of 2025

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Home prices in Australia’s capital cities have begun to fall, with experts predicting the decline could last at least a year and wipe as much as 10% from values.

The median capital city home price fell in May, the first decline since January 2025, as high interest rates and inflation stretched buyer budgets, Cotality reported on Monday. Auction success hit a new low for the year.