Home Prices Fall Across Every Capital in June 2026

Three rate rises and investor tax changes hit buyer demand in June, dragging national values down 0.3% as listings climb 13% year on year.

For every Australian capital city in June, home values moved in the same direction — down. The data now reflects the cumulative weight of three consecutive interest rate rises, combined with changes to investor tax settings that took effect after the May federal budget.

What the June Numbers Show

MPA Australia reports that national values fell 0.3% in June, with every capital city recording a monthly decline. Sydney and Perth led the falls, each down 0.5% for the month. Melbourne and Canberra followed at -0.4%, while Brisbane, Adelaide, Darwin and Hobart all posted more modest falls. Darwin was the only exception to the downward trend, rising 0.2%.

Anne Flaherty, senior economist at realestate.com.au, was direct about the driver: "The cumulative impact of three interest rate rises and changes to investor tax settings have dampened buyer demand, contributing to softer prices in June."

Despite the monthly falls, the annual picture remains positive in most cities. National values are still 5.8% higher than a year ago, and every capital except Melbourne has recorded positive growth over the past 12 months. This is a market correcting within a longer cycle, not a structural break.

Supply Is Rising and Buyers Are Gaining Leverage

The supply side has shifted noticeably in buyers' favour. New listings nationally increased 13.3% year on year in June, with growth recorded in every capital city and across combined regional areas. Darwin led the capitals with 31.9% more new listings than a year ago, followed by Perth at 25% and Brisbane at 22.4%. Canberra, Brisbane and Adelaide recorded the largest year-on-year increases in total stock available for sale.

New listings fell month on month in most capitals as the market entered the quieter winter selling period — Brisbane and Adelaide were the two exceptions.

The auction market is confirming the broader shift. The national clearance rate has remained below 50% for eight consecutive weeks as of the final week of June, according to MPA Australia. Clearance rates had been softening since the start of the year in response to successive rate rises, with a further step down following the federal Budget in mid-May. A sustained clearance rate below 50% typically reflects a widening gap between what buyers are willing to pay and what sellers are asking — a dynamic that drives further price falls in the months ahead.

It is worth noting that median days on market fell slightly, from 37 to 36 days year on year nationally. Well-priced property is still moving.

What This Means for Buyers Right Now

For buyers who have been waiting for conditions to ease, the current window is real. More listings, less competition, softening prices and longer selling timelines collectively give you stronger negotiating power than at any point in the last two years. If you are ready to act, having your financing confirmed puts you ahead of most other buyers in the market right now.

Use our borrowing power calculator to understand what you can currently borrow, then compare the cheapest home loans available — lenders are actively competing for business in a way they have not been for some time, and rates have fallen at 18 institutions over the past month.

For first-home buyers, reduced investor activity is creating genuine openings in markets that were extremely competitive 12 months ago. That gap is likely to close again once conditions stabilise, so the timing advantage is temporary.

The Investor Picture and Regional Markets

For investors, the monthly numbers reflect the policy environment. Investor lending has fallen sharply in the wake of changes to negative gearing on existing properties, and investor activity fell to its lowest share in June in recent years. But the rental market is tightening fast — rents are rising sharply in most cities, and the underlying housing supply shortfall is structural. The long-term investment case is unchanged; the near-term entry conditions have simply improved.

Regional markets continue to hold up. Most regional areas are sitting at or near record price levels, driven by affordability dynamics that have kept demand flowing out of the capitals. Selling times improved substantially in regional markets year on year, falling from 51 days to 44 days nationally.

One factor worth watching: anticipated changes to capital gains tax settings effective from 1 July 2027 may be prompting some sellers to bring forward their plans. More supply coming to market is good news for buyers.

If you are an existing owner and you have not reviewed your rate in the past 12 months, now is a sensible time to do so. Banks are cutting rates to compete for business. Our refinance savings calculator can show you what even a small rate reduction is worth over the remaining life of your loan. Browse our refinance home loans comparison to see what is available today.

The market has shifted. Preparation and a clear price expectation are now the edge.

Source: MPA Australia