Australia's housing market loses steam with prices falling in Sydney and Melbourne
There were also more houses for sale in the country's two biggest cities than there had been at this time of year since 2018
www.theguardian.comHere’s the latest snapshot on Melbourne housing prices based on recent credible reports:
- Domain Melbourne market report (Jan 2025): Median house prices fell about 1% in 2024, ending the year around $1.04 million, with inner-east and certain high-value areas taking the biggest hits; units rose modestly. This indicates a softer upstream price trajectory rather than a broad collapse.[1]
- Real estate portals in early 2026 show continued softness in Melbourne prices with occasional monthly declines (e.g., February 2026 reported a small dip, around 0.1%), while buyers’ affordability relative to other capitals remains a potential catalyst for slower, steadier gains later in 2026.[3][7]
- Broader commentary and media coverage in 2026 note a two-speed market, with some segments (upper end) under more pressure than others, and rising listings as investors retreat; however, there are ongoing discussions about a national correction versus Melbourne-only dynamics.[4][6][9]
Key takeaways to watch:
- Melbourne’s overall price level has hovered near flat to mildly down year-on-year in several 2024–2026 updates, with monthly variations rather than uniform declines across all submarkets.[7][1]
- The outer suburbs and more affordable segments have shown more resilience than the inner or upper-end markets, but sentiment and borrowing costs continue to influence momentum.[1][3]
- Rental and listing dynamics have been mixed, with some reports suggesting rising listings and investor relocation, which can temper price gains in the near term.[7][1]
Illustration example:
- If you’d like, I can pull a concise chart demonstrating Melbourne’s monthly median house prices from 2023–2026 and annotate key policy or rate-change events to visualize the price trajectory.
Would you like me to compile a short, citable summary with a chart of Melbourne median house prices over the past 3 years and include sources? I can also tailor the focus to inner-city vs outer-suburb trends or to apartment prices if that’s more relevant.