House prices across Australia are experiencing a significant decline, with every capital city reporting falling prices for the first time in 15 years. According to Domain's September Quarter 2026 House Price report, this marks only the second time on record that such a widespread downturn has occurred.

Key Findings

  • Sydney: House prices have dropped 4.7% in the September quarter, reaching a two-year low of $1.66 million.
  • Melbourne: Prices have fallen for the third consecutive quarter, decreasing 3.3% to a median of $1.014 million, marking its largest quarterly decline in four years.
  • Perth: Recorded the sharpest drop with a record fall of 4.7%.
  • Brisbane and Adelaide: Both cities logged their steepest quarterly house price falls on record.

Expert Insights

Nicola Powell, Domain’s chief residential economist, noted that the downturn is broadening geographically and across property types, affecting both houses and units. She stated:

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"Homes are taking longer to sell, there is greater scope to negotiate, and sellers are having to be more realistic about price expectations."