Property Market Update | Home Prices Now Falling Following Rate Rises | Dr. Andrew Wilson

Why It Matters

The data signal an important shift from rapid growth to a cyclical adjustment that will influence borrowing capacity, investor participation and rental supply; policymakers, lenders and property market participants should prepare for weaker near‑term activity but not necessarily long‑term decline.

Summary

May data from My Housing Market show national capital city median house prices fell 0.8%—the sharpest monthly drop since September 2022—though prices remain 8.5% higher year‑on‑year. My Housing Market’s chief economist, Dr. Andrew Wilson, attributes the pullback to three consecutive interest‑rate rises, rising affordability constraints, seasonal effects and recent policy/tax changes, noting clear divergence across cities and between houses and units. Falling auction clearance rates and reduced activity indicate a cyclical cooling rather than a market collapse, while chronic supply shortages and ongoing demand mean a recovery could emerge in a later selling season. The report emphasizes that national averages mask significant local variation in performance.

Original Description

Capital city home prices have generally fallen over May, reflecting the impact on affordability and confidence of this year’s three consecutive increases in official interest rates.

The national capital city median house price fell by 0.8% over the May quarter to $1,287,476 compared to the April quarter, according to the latest data from My Housing Market.

--

You can also read the full article on Property Update: https://propertyupdate.com.au/property-news-headlines-forecasts

If you're looking for Direction, Certainty, and Wealth Producing Results in property and wealth creation why not get my team at Metropole to discuss your options: https://metropole.com.au/enquiry/

#PropertyInsiders #MichaelYardney #DrAndrewWilson #AustralianPropertyMarket #PropertyInvestment #RealEstateInsights #MarketUpdates #propertytrends

--

About Property Insiders

Hosted by Michael Yardney and respected property economist Dr Andrew Wilson, Property Insiders delivers research-based analysis of Australia’s housing markets.

We unpack:

• National and capital city property price data

• Weekly auction results

• Housing supply and demand metrics

• Population growth impacts on property

• Market momentum indicators

• Regional vs capital city performance

• Property market turning points

• Short-term trends vs long-term fundamentals

If you want reliable Australian property market analysis grounded in data rather than speculation, Property Insiders delivers informed commentary to help investors stay ahead of the cycle.

Explore more property research at:

https://propertyupdate.com.au