Home prices fall across the capitals as regions remain resilient

Australian home values have declined for a fourth straight month, but prices are holding up in pockets of affordability across the country.The national median home price fell by 0.3% in July, according to the monthly PropTrack Home Price Index.Prices fell in all the capitals except Darwin, with Sydney, Adelaide, Canberra and Hobart recording the largest falls, while prices stayed flat across most regional markets.The decline in home prices follows three interest rate rises delivered in quick succession earlier this year, in addition to major tax changes targeting investors.The changes introduced in the federal budget, which prohibit negative gearing for established homes and reduce the capital gains discount, were designed to disincentivise property investors from purchasing established properties. But the new rules have exacerbated a property market downturn that had been brewing since the resurgence of Australia’s inflation problem late last year, which prompted the Reserve Bank to rapidly reverse all of last year’s rate cuts.Melbourne home prices declined by 0.4% and are 4.4% below the peak recorded in October last year. Picture: realestate.com.au/soldREA Group senior economist ...