Falling Melb house prices fail to help buyers as mortgage rates bite

Couples seeking a median-priced Melbourne house have 62 less areas to choose from than October 2025, according to a new Canstar report. Melbourne’s housing market fall isn’t helping buyers, with rising interest rates locking couples hunting the city’s typical home out of 62 more suburbs this year compared to last. An alarming new report shows two-person households earning an income which allows them to afford a typically-priced $960,000 house with a 30-year mortgage, now have a choice of just 146 suburbs – contrasted to 210 areas in October 2025. According to the analysis from financial comparison website Canstar.com.au, the most affordable locations for purchasers wanting a house in Melbourne are Melton with a $570,000 median value, Melton South at $580,000 and Wyndham Vale at $610,000. RELATED: Melbourne tenants slugged extra $1560 a year amid tight rental supply ABS data reveals 130,000-home building shortfall under Albanese Accord Australians spend record $100bn on new homes amid tradie shortage Canstar’s group manager of research Josh Sale said the biggest takeaway from the data was that higher interest rates had weakened the traditional link between property prices and afford...