Aussie property prices have taken another major hit with values falling for a fifth consecutive month.
Property prices dropped 1.4 per cent in September, after falling 1.6 per cent last month, according to CoreLogic’s national Home Value Index.
In the capital cities, Sydney values were down 1.8 per cent in September, while Melbourne values fell 1.1 per cent and in Brisbane they dropped 1.7 per cent.
Adelaide and Perth saw small monthly losses of 0.2 per cent and 0.4 per cent respectively, while Darwin was the only capital that didn’t see a fall.
CoreLogic research director Tim Lawless said while property value declines had eased, it was unclear what lay ahead.
"It's possible we have seen the initial shock of a rapid rise in interest rates pass through the market and most borrowers and prospective home buyers have now 'priced in' further rate hikes," he said.
"However, if interest rates continue to rise as rapidly as they have since May, we could see the rate of decline in housing values accelerate once again."
Lawless said Sydney was a standout for its falls, with values slipping more than $100,000 - or 9 per cent - since the city's peak prices in January.
Some of the largest drops were in Sydney's Northern Beaches, where values were down at least 14.5 per cent from earlier this year.
Lawless also pointed to big drops in values in the flood-hit Richmond and Tweed areas in NSW.
Brisbane was also notable for its continued slide, with values now 4.3 per cent, or $33,600, below the June 2022 peak.
"We are still seeing some resilience to value falls around the more affordable areas of Adelaide and Perth, as well as some regional markets associated with agriculture, mining and tourism," Lawless said.
Why are home prices falling?
This is the fifth monthly decline in a row after the Reserve Bank of Australia (RBA) started hiking interest rates.
Higher interest rates means high mortgage repayments which has scared some potential new buyers from entering the market.
The RBA is expected to hike the official interest rate again when it meets tomorrow, with experts predicting another 0.50 per cent rise.
Research from RateCity.com.au found someone with $750,000 remaining on the loan the total increase in monthly repayments since May would be $1,140.