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Anne Flaherty predicts further Australian property price declines as national median dwelling price drops to $989,000

Australia's national housing market is experiencing a significant downturn, with the median dwelling price falling 0.3 per cent in July to $989,000. This marks the fourth consecutive month of decline, following a period of high growth. The decline is being driven by a combination of factors, including three consecutive interest rate hikes by the Reserve Bank of Australia and significant changes to the federal budget that have reduced investor demand. Anne Flaherty, a senior economist at PropTrack, noted that the market is becoming a buyer's market, providing more bargaining power to first-home buyers and upsizers. While Sydney remains the most expensive market and was hit hardest by the falling prices, Darwin was the only capital city to see a price increase. Regional markets have remained relatively stable compared to capital cities. Despite the current slump, long-term growth remains strong, with a 3.9 per cent annual growth rate since last year. Analysts expect prices to continue falling before the end of the year as buyers wait for the market to reach its floor.

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