Sydney, Melbourne house prices fall while values rise elsewhere | The Business | ABC NEWS

Home prices rose nationally by 0.7 per cent in March and 9.9 per cent over the year, according to data from Cotality. The median home value is now $933,137. The divide between capital cities is now widening significantly. Perth led the monthly gains, followed by Brisbane, Darwin, Adelaide, the regions, Hobart and Canberra. Values in Sydney and Melbourne went backwards. Cotality head of research Gerard Burg said "the widening divergence" came down to demand and dwelling availability. "In Sydney, you really see affordability constraints being a huge issue … there's a limited pool of buyers who can really look to make a purchase of that kind," Mr Burg said. REA Group senior economist Eleanor Creagh said the sentiment was also reflected in recent auction clearance rates and higher interest rates were cutting borrowing capacity of buyers. Gerard Burg said the Middle East war was also having an impact. Sydney and Melbourne are entering the early stages of a downturn according to Cotality.
The Reserve Bank has increased interest rates twice in 2026, taking the cash rate to 4.1 per cent. Westpac's chief economist Luci Ellis is forecasting as many as three more rate hikes in 2026.
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