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The Guardian - AU
The Guardian - AU
National
Luca Ittimani

House prices fall in Sydney and Melbourne as interest rates and Iran war fallout spook buyers

New housing in San Remo, Victoria
New housing in San Remo, Victoria. The median house price on Melbourne and Sydney’s property markets has fallen over the first three months of 2026. Photograph: Joel Carrett/AAP

House prices in Sydney and Melbourne are falling as interest rate rises and economic uncertainty caused by conflict in the Middle East saw buyers leave the market during the last quarter.

New Cotality data shows growth has slowed across the country in the last three months. The slowdown that began in December has continued, due largely to the Reserve Bank interest rate hikes in February and March putting median homes out of reach.

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