A Changing Market Brings New Opportunities

Australia’s housing market has recorded its largest monthly fall in home values since December 2022, with national dwelling values declining 0.4 per cent in June as higher interest rates, affordability pressures and weaker consumer confidence continue to weigh on the market.

The latest figures from property research firm Cotality mark the third consecutive monthly decline, with Sydney leading the falls at 1.2 per cent, followed by Melbourne (1.0 per cent) and Canberra (0.6 per cent). Brisbane edged up 0.3 per cent, Perth rose 0.7 per cent and Adelaide remained steady.

June dwelling values

• Sydney ▼ 1.2% – Median value: $1,265,608

• Melbourne ▼ 1.0% – Median value: $808,486

• Canberra ▼ 0.6% – Median value: $885,254

• Brisbane ▲ 0.3% – Median value: $1,118,306

• Adelaide 0.0% – Median value: $945,868

• Perth ▲ 0.7% – Median value: $1,046,551

Speaking on Sunrise, Cotality Executive Research Director Tim Lawless said while the monthly decline was relatively modest, it signalled a market entering the early stages of a downturn.

“We haven’t seen a fall this large since December 2022, and it’s clearly gathering momentum,” he said.

While national headlines focus on market movements, property remains a long-term investment. Across the Redlands Coast, changing conditions are providing buyers with more choice while rewarding sellers who present and price their homes well. As local agents often remind clients, there is rarely a perfect market,only the right time for your own circumstances.

Mr Lawless said the slowdown began before the Federal Budget, with three interest rate rises, stretched affordability and low consumer confidence already dampening demand. He described the current conditions as a “perfect storm”, with multiple factors placing downward pressure on the market simultaneously.

For first-home buyers, families looking to upsize and long-term investors, including those purchasing through Self-Managed Super Funds (SMSFs), a softer market may present an opportunity to secure property before confidence returns.

Mr Lawless said many buyers remain cautious while prices are falling, preferring to wait for greater certainty around inflation and interest rates.

However, property markets are cyclical, and history suggests improved affordability and lower competition often provide opportunities for well-prepared buyers. For those with finance in place and a long-term outlook, the current market may offer a window that becomes harder to find once interest rates begin to ease and buyer confidence returns.