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Australian house prices fall 1%, banks face hard landing

7/7/2026

31 7 Full Breakdown

Summary

Story summary

House prices in Australia have fallen 1% from the March 2026 peak.
Auction clearance rates have softened.
Median prices in Sydney and Melbourne are easing.
Mortgage arrears remain low, fewer than 1% of loans 90 days past due.
Analysts say each 1% price drop removes $120 billion from the $12 trillion pool and warn a 10% decline could cause a hard landing and RBA cuts that would hurt banks and construction.

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Story summary

House prices in Australia have fallen 1% from the March 2026 peak.
Auction clearance rates have softened.
Median prices in Sydney and Melbourne are easing.
Mortgage arrears remain low, fewer than 1% of loans 90 days past due.
Analysts say each 1% price drop removes $120 billion from the $12 trillion pool and warn a 10% decline could cause a hard landing and RBA cuts that would hurt banks and construction.