House prices fall seventh month as rate rises dent demand

House prices fall seventh month as rate rises dent demand

Capital city home values fell 1.4 per cent in October, extending the national slide to a seventh consecutive month, according to property research group Cotality. They are now down 8.1 per cent since March, a drop Cotality says is tracking faster than any downturn in the past 40 years. The national median house price now sits at $884,855, and the median dwelling has lost about $63,400 in value since the March peak. The Reserve Bank has lifted interest rates four times this year, and a fifth rise is widely expected when it announces its decision on Tuesday. Buyers are pulling back as loans become costlier, and auction clearance rates across the combined capitals are consistently below 50 per cent. Morgan Stanley forecasts peak-to-trough declines of up to 15 per cent, while Domain's chief economist Nicola Powell says rate cuts are unlikely until late 2027.