National median falls to $894,000 as every major city except Darwin records a monthly decline
The median price of an Australian home declined by 0.3% in July to $894,000, with houses falling 0.4% to $989,000 and units easing 0.2% to $730,000.
Capital cities were the primary driver of the national decline, with every market except Darwin recording lower prices over the month.
Combined capital city prices fell 0.4% in July and are now down 2.5% from their March peak.
"High interest rates continue to weigh on prices by constraining borrowing capacities which could be exacerbated if we see another interest rate rise this year," said Anne Flaherty (pictured right), senior economist at REA Group.
"Cost-of-living pressures are also stretching buyers’ budgets, with inflation still above target levels. Budget tax changes are also likely impacting overall buyer demand, and ongoing price falls could be driving some buyers to delay purchasing until prices stabilise."
Regional markets demonstrated greater resilience, with combined regional prices holding steady over the month. Regional areas were just 0.3% below their peak levels in July, with South Australia, Tasmania, and the Northern Territory still recording prices at all-time highs.
Regional South Australia was the strongest performer nationally, with prices rising 0.6% over the month. Overall, regional home values remain 8% above year-ago levels.
Units have outpaced houses for price growth over the past year — recording 5.1% growth nationally against 3.6% for houses — reversing a long-standing trend.
"Affordability may be a contributor here, with a growing share of buyers priced out of purchasing houses, particularly in the more expensive established inner and middle ring suburbs," Flaherty said.
"The high average price point of new unit developments could also be contributing to the rise, with the majority of new unit stock priced above established stock."
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