House prices fall in four capital cities as Sydney values drop nearly $50,000 this year

House prices are now falling in four capital cities with the Adelaide market beginning to slide in June, while Sydney values have dropped by $48,000 since the start of the year. Data from Cotality, released on Wednesday, showed Sydney and Melbourne recorded their biggest one-month decline in values since August 2022, falling 1.2% and 1% respectively. Sydney median home prices have fallen $48,000 since January and were now just $3,000 above where they were in June 2025, according to Cotality. Melbourne’s median prices were now $7,000 below where they were in June 2025. In Canberra , prices were $8,000 below January levels – but still $25,000 above where they were a year earlier. Adelaide home prices had risen for 15 consecutive months, including a 15.4% rise in the last year. But prices fell in the second half of June after a modest rise, Cotality’s daily data shows . Table showing home price changes in Australia's capital cities Interest rates have risen three times since February and the government’s tax reforms have reduced property investors’ borrowing capacity, weighing down housing demand. The Reserve Bank board left interest rates on hold in June after being caught off-guard by the rapid slowdown, according to minutes of its meeting published on Tuesday. More than half of homes taken to auction are not selling, with national clearance rates holding below 50% since the end of May.