Australia’s property market is currently undergoing a period of adjustment, as rising interest rates and less attractive tax conditions for investors contribute to a slowdown in home price growth. According to data from Cotality, most major cities experienced declines in property values during the winter season, with Sydney seeing the most significant drop. This trend is expected to continue, as ongoing inflation could prompt further increases in interest rates, which may reduce buyer demand and further impact prices. However, the recent price declines are not evenly distributed across the country. Suburbs that saw the largest price increases in the past are now cooling the fastest, while more affordable homes tend to hold their value better. These homes are in higher demand from first-time buyers, who are supported by a government program that allows them to purchase a home with a smaller deposit. This has helped maintain some stability in more affordable housing markets. In some cities, such as Brisbane, Perth, and Darwin, home values have still increased by more than 10% over the past year, showing that not all regions are experiencing the same level of decline. However, the recent price drops have not significantly improved affordability for potential buyers. Higher mortgage rates have reduced the amount of money people can borrow, limiting their purchasing power despite lower prices. AMP, a financial services company, notes that the recent price declines are relatively small in the context of a much larger increase in home values since the start of the pandemic. It describes the current correction as a minor setback following a substantial rise in property prices. This suggests that while the market is adjusting, the long-term trend of rising home values remains intact in many areas.