23/10/2026
For only the second time ever, house prices have fallen across all Australian capital cities, falling by 4.7% last quarter, the steepest drop on record according to data from Domain.
The real estate platform's data showed the sharpest decline was in Perth, where prices dropped 7.4 per cent.
It marked a clear shift in the housing cycle, according to Nicola Powell, Domain's chief residential economist.
"What began as weakness concentrated in some cities has broadened considerably," Dr Powell said.
"The balance of power has shifted towards buyers.
"Homes are taking longer to sell, there is greater scope to negotiate, and sellers are having to be more realistic about price expectations."
Property economist Cameron Kusher said prices would be unlikely to return to their previous heights, at least not in the short term.
"I think this downturn is probably going to drag on a bit longer than people expect, and it probably will until it looks like interest rates are going to actually be reduced again," he said.
