# Australian home values slide as buyers retreat and rate rises lift mortgage costs

- URL: https://talkfuse.com/story/australia-your-house-prices-are-dropping-up-to-20-per-cent-and-mortgage-pain-is-going-to-get-worse-as-agents-warn-the-housing-market-is-paralysed/
- Published: 2026-10-28T09:21:37+00:00
- Updated: 2026-10-28T09:38:45+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/news/article-16240751/Australia-house-prices-dropping-20-cent-mortgage-pain-going-worse-agents-warn-housing-market-paralysed.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: World

## Key points

- Australian home values have fallen 7.6 per cent since April.
- Analysts warn Sydney prices could fall 20 per cent from their peak.
- Further rate rises could add $5,472 a year to average repayments.

## Summary

Australian house prices are falling as buyers retreat and sellers resist lowering their expectations, prompting analysts to warn that values could drop as much as 20 per cent from their peak. The downturn matters because inflation has risen despite four interest rate increases this year, leaving the Reserve Bank under pressure to raise rates again and adding to mortgage costs.

Values across Australia’s five largest capital cities have fallen 7.6 per cent since April, with Sydney down nearly 10 per cent from its peak. If all five rate rises pass through, average monthly mortgage repayments would increase by about $456, or $5,472 a year. Auction clearance rates have been below 50 per cent for most of the past five months, while forecasts from HSBC and ANZ point to falls of around 13 per cent across capital cities; the article compares the downturn with New Zealand’s housing slump.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.