Australian home values have declined for a fourth straight month, but prices are holding up in pockets of affordability across the country.<\/strong><\/p>\n The national median home price fell by 0.3% in July, according to the monthly PropTrack Home Price Index.<\/p>\n Prices fell in all the capitals except Darwin, with Sydney, Adelaide, Canberra and Hobart recording the largest falls, while prices stayed flat across most regional markets.<\/p>\n The decline in home prices follows three interest rate rises delivered in quick succession earlier this year, in addition to major tax changes targeting investors.<\/p>\n The changes introduced in the federal budget<\/a>, which prohibit negative gearing for established homes and reduce the capital gains discount, were designed to disincentivise property investors from purchasing established properties.\u00a0<\/p>\n But the new rules have exacerbated a property market downturn that had been brewing since the resurgence of Australia\u2019s inflation problem late last year, which prompted the Reserve Bank to rapidly reverse all of last year\u2019s rate cuts.<\/p>\n Melbourne home prices declined by 0.4% and are 4.4% below the peak recorded in October last year. Picture: realestate.com.au\/sold<\/p>\n<\/div>\n REA Group senior economist Anne Flaherty<\/a> said high interest rates had constrained borrowing capacities and tax changes had dented investor demand, contributing to price weakness as buyers held back.<\/p>\n \u201cOngoing price falls could be driving some buyers to delay purchasing until prices stabilise,\u201d she said.<\/p>\n Although there are expectations that interest rates will need to be raised again this year, homeowners may have been given at least a temporary reprieve from a rate hike next month.<\/p>\n A softer inflation result last week significantly reduced the odds of a hike at the RBA\u2019s next interest rate decision on August 11, with financial markets pricing in just a 3% chance that rates will be lifted.<\/p>\n Sydney prices fell the most out of all the capitals, with the median home value declining by 0.6% in July.<\/p>\n Prices declined by 0.5% in Adelaide, Hobart and Canberra, 0.4% in Melbourne, 0.3% in Brisbane and 0.2% in Perth.<\/p>\n Home prices in all the capitals except Darwin are now below peaks recorded in late 2025 and early 2026.<\/p>\n Darwin prices reached a new record high in July after values climbed a further 0.1%.<\/p>\n Perth prices fell 0.2% in July but are still about 15% higher than a year ago and have roughly doubled in five years. Picture: realestate.com.au\/sold<\/p>\n<\/div>\n Price weakness in the capitals contrasts with more resilient conditions in regional Australia.\u00a0<\/p>\n While regional NSW and Victoria recorded small falls of 0.1%, prices remained flat in other regional areas, and regional South Australia had a 0.6% lift in values.<\/p>\n \u201cHome prices in Australia\u2019s regional areas continued to show greater resilience than the capital cities,\u201d Ms Flaherty said.\u00a0<\/p>\n \u201cOverall, regional home prices remain 8% higher compared to a year ago.\u201d<\/p>\n Prices have held up better in regional areas than the capitals. Prices in Launceston are up 2% in the past three months and 15% in the past year. Picture: Getty<\/p>\n<\/div>\n More-affordable areas have outperformed for price growth over the past year, Ms Flaherty said.<\/p>\n \u201cRegions that have seen the largest price falls, in contrast, are typically in more expensive markets including Melbourne\u2019s inner east and inner south, and Sydney\u2019s eastern suburbs,\u201d she said.<\/p>\n Units held up better than houses in most markets, with the relative affordability of units attracting more buyers who were priced out of purchasing houses, Ms Flaherty said.<\/p>\n \u201cWhile houses have historically outpaced units for price growth, this trend has reversed over the past year, with houses seeing 3.6% growth nationally compared to 5.1% for units,\u201d she Flaherty said.<\/p>\n Unit values have held up better than houses, with more buyers gravitating towards more-affordable properties. Picture: realestate.com.au\/sold<\/p>\n<\/div>\n<\/picture><\/div>\n
<\/div>\nHow home prices changed around Australia in July<\/h3>\n
<\/picture><\/div>\n<\/div>\n
<\/picture><\/div>\n
<\/div>\n<\/picture><\/div>\n
<\/div>\n<\/picture><\/div>\n
<\/div>\n