Couple Jessica Ongarello and Callum McIntyre decided two months ago to buy in the area they want to live in, taking advantage of falling house prices after years of renting. Domain's September Quarter 2026 House Price Report shows Melbourne prices fell 3.3% in the quarter, a third straight quarterly decline, and the downturn spread nationwide for only the second time on record, with prices falling across every capital city. Perth recorded a record 4.7% drop, while Sydney prices fell 4.7% to $1.66 million, a two-year low. Higher interest rates, cost-of-living pressures and changes to housing investment tax policy have weakened buyer confidence and borrowing capacity, and Domain's chief residential economist said prices could keep falling for many months. Morgan Stanley expects the market to bottom out in the second half of 2027, with a peak-to-trough decline of up to 15%.
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Related tickers and likely impact
AUD/USD
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 0.70040 |
| Change that session | +0.35% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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