Aussie house prices tumbling at record pace

Finally, the next chart plots the declines from peak across the five major capital cities as at 30 September:Sydney’s 9.0% decline is easily the sharpest, followed by Melbourne (-5.6%) and Brisbane (-4.4%). This is to be expected, since Sydney’s house prices are the most expensive in the nation and it has the most indebted households. Therefore, Sydney is the most sensitive to interest rate rises. How far Australia’s house price correction goes will ultimately depend on how far the Reserve Bank hikes rates. Regardless, the ‘record’ 10.7% decline in 5-city aggregate values recorded over 2017-19 looks set to be smashed.