Australian home prices are falling faster than ever, marking a historic downturn in the property market. According to new data from CoreLogic, national housing values dropped by 8.4% between May 2022 and January 2023. This surpasses the previous record decline of 8.38%, which unfolded over 20 months from 2017 to 2019. This time, the plunge happened in less than nine months—and further declines may be looming.
Why Are Australian Home Prices Falling?
CoreLogic’s Head of Research, Eliza Owen, attributes the sharp Australian home price decline to the Reserve Bank of Australia’s aggressive interest rate hikes. These increases have slashed borrowing capacity, limiting how much buyers can offer. Compounding the issue, Australians are grappling with record-high housing debt—currently at 188.5% of income—while falling real wages continue to dampen buyer confidence.
City-Specific Impacts
The steepest price drops have hit major cities:
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Sydney: -13%
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Melbourne: -8.6%
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Brisbane: -10%
Across the country, the average home has lost approximately $64,820 in value since May 2022.
Tracking the Market
CoreLogic’s Daily Home Values Index monitors price changes across detached houses, units, and combined dwellings. You can explore how the index works and stay updated on the latest trends .
For a deeper look at Australian property market trends, visit our real estate insights section or check out CoreLogic’s latest housing report
