Sydney, Melbourne and Canberra house prices falling faster than forecast

Directly relevant to mortgage holders, property investors, buyers and renters. Falls reduce equity and may affect refinancing capacity; first-home buyers face a mixed picture.

In a nutshell: Property prices in Sydney, Melbourne and Canberra are falling as three RBA rate hikes in the first half of 2026 have cut individual borrowing power by roughly $35,400 since January, according to Canstar. Auction clearance rates and mortgage applications have both dropped sharply. ANZ forecasts prices will begin recovering in the second half of 2027 as rates fall; big-four banks broadly see cuts starting mid-2027.