National home prices fell 0.3% in June, with Sydney and Perth recording the steepest monthly declines, according to realestate.com.au's latest Market Snapshot.
Melbourne and Canberra weren't far behind, while Darwin was the only capital to post a monthly gain. Despite the pullback, prices remain higher than a year ago in every capital except Melbourne, with national values up 5.8% annually.
The data lands ahead of a closely watched RBA decision in August, with economists and brokers divided on whether the central bank will hold again or begin cutting rates.
realestate.com.au senior economist Anne Flaherty (pictured) attributes June's softness to "the cumulative impact of three interest rate rises and changes to investor tax settings," which have dampened buyer demand across the capitals.
Regional markets have held up better, with prices flat over the month and many regional areas still sitting at record highs. Flaherty notes affordability has driven much of the past year's performance, "evidenced by unit growth outperforming houses, and regional areas outpacing capital cities."
New listings rose 13.3% year-on-year nationally in June, with gains recorded in every capital and across regional areas. Darwin, Perth, and Brisbane, the three capitals with the strongest annual price growth, also saw the largest lift in new listings, which Flaherty suggests may reflect owners seeking to capitalise on recent gains.
She adds that upcoming capital gains tax changes from 1 July 2027 "could also be incentivising more sellers to head to market sooner." Listings eased month-on-month in most capitals as the winter selling season set in, with Brisbane and Adelaide the exceptions.
The slowdown is most visible at auction. Sydney and Melbourne clearance rates have fallen to their lowest levels since 2020, with the national rate sitting below 50% for eight consecutive weeks as of late June.
Flaherty says this points to "a mismatch between buyer and seller expectations, which could point to further price falls over the coming months."
Separate data from Cotality points to the same trend from a different angle: the share of new listings going to auction has retreated from a November peak of almost 45% to just over 30% in June. Selling times have held broadly steady despite the pullback, with the national median days on market easing slightly to 36 days from 37 a year ago.
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