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AU Edition - Today's top story: Australia's housing market is cooling. Perhaps our expectations should too View in browser

7 July 2026

AU Edition

 

Over the past 25 years, median Australian house prices have risen dramatically – from just over $200,000 to around $1.1 million – putting a home out of reach for many. That’s the affordability crisis the federal government is trying to tackle, belatedly, with its tax changes.

Again this weekend, auction clearance rates were among the lowest levels since COVID slammed the market in 2020.

Yet as house prices have softened, initially triggered by the Reserve Bank’s first rate hike in February, there’s been an avalanche of headlines bemoaning the small decline and claiming it will tank the economy.

As experts Alan Duncan and Steven Rowley explain, fears of a broader economic slowdown are overblown. A cooler housing market will help first home buyers, and should give pause to those who measure the success of Australia’s housing system on price alone.

 

Victoria Thieberger

Business and Economics Editor

 
 
 

Australia’s housing market is cooling. Perhaps our expectations should too

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Your Say

Loving the migration series, but I’m concerned by reader comments that Australia is "at capacity" or similar. The notion that Australia is environmentally overpopulated, when our cities are littered with suburban sprawl and our public transport networks can't get enough capacity to run more than half-hourly services (often hourly) from many places to the middle of the city (let alone between neighbouring suburbs) forcing most people to rely on cars, is baffling to me. We don't have a population problem, we have a per capita space/resource consumption problem. We need to bunch up, reduce our footprints, and welcome the critical mass of people that will make better public services more viable to deliver.

Katrina Couzens
Read series here

Personally, as someone who has always voted Green, I’m actually at a loss as to who to vote for at the next election. I can only vote to keep the right wing out, which is really sad that no one on the middle to the left has the guts to really stand up for something. It seems that there’s a politics of fear that if we stand up too much we’ll get attacked. We are at such a critical turning point and the nonsense being talked about in political spheres just leaves me and many of my colleagues shaking our heads in wonderment.