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According to ABC News, Australian home values fell for a seventh straight month in October, with the decline moving at the fastest pace recorded across the past 40 years. Cotality’s national Home Value Index dropped 1.2 per cent during the month and was 6.7 per cent below its March peak.

The fall represents about $63,400 from the median Australian dwelling value, leaving the national median at $884,855. Cotality head of research Gerard Burg said capital-city values had declined 8.1 per cent in seven months, close to the 8.2 per cent combined-capital fall recorded from 2017 to 2019.

Higher interest rates have reduced households’ borrowing capacity and lifted mortgage repayments, Mr Burg said. Values have dropped in virtually every suburb across Brisbane, Perth and Adelaide over the past three months, while investor demand has also weakened following federal budget changes to property tax breaks.

Sales over the past three months were 23 per cent lower than a year earlier and 18 per cent below the previous five-year average, Cotality said. Combined-capital auction clearance rates have remained below 50 per cent, while the median time on market reached 39 days, its highest level since August 2020. Vendor discounting stood at 4.7 per cent, the largest since May 2019.

Mr Burg said buyers were likely to remain cautious until the Reserve Bank of Australia signalled a different direction for rates, which he said was unlikely before the latter half of 2027. Domain chief economist Nicola Powell said a 10 per cent decline in prices was possible. In Melbourne, Cotality recorded a median dwelling value of $773,027, while some agents reported weaker inquiries and increasingly cautious buyers.