Capital city home prices fall as experts predict Australia’s property slump could last a year and cut values by 10%

Capital city house price falls in May could be the start of a year-long decline, even in smaller cities where prices boomed, Cotality says. Photograph: Dan Himbrechts/AAP

Home prices in Australia’s capital cities have begun to fall, with experts predicting the decline could last at least a year and wipe as much as 10% from values.

The median capital city home price fell in May, the first decline since January 2025, as high interest rates and inflation stretched buyer budgets, Cotality reported on Monday. Auction success hit a new low for the year.