Housing market on track for its steepest downturn in 40 years
Australia's housing market is experiencing its most significant downturn in 40 years, with property values falling across major capital cities. Rising interest rates and decreased buyer interest are cited as primary drivers for the decline.
Why it matters
The housing market is a critical indicator of economic health, and this downturn suggests significant financial pressure on Australian homeowners and investors.
Lucy Slade Property reporter Updated Oct 1, 2026 – 9.48am , first published at 5.00am Australia’s housing market is on track for its steepest downturn in four decades, with the median property value in Sydney falling more than $112,000 since a February peak and declines in other major capital cities accelerating as interest rates rise and buyers shun auctions.
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