Australian home prices extend decline as inflation, rate fears weigh

Australian home prices fell for a fifth consecutive month in August, recording their sharpest downturn since the pandemic as persistent inflation and the prospect of higher interest rates weighed on the housing market.The country's home prices declined 0.9 per cent from July, when they fell 1.2 per cent, according to property consultant Cotality. Sydney and Melbourne led the decline, with prices falling 1.4 per cent and 1.1 per cent, respectively. Values in both cities are now about 7 per cent below their peaks, reported Reuters.The downturn has spread beyond the two largest markets, with Brisbane and Perth falling 1 per cent and 0.8 per cent in August after recording double-digit gains earlier this year. Nearly all capital cities recorded declines during the month.The housing slowdown comes as higher borrowing costs and persistent inflation squeeze demand.