House prices slide across Australia as Middle East conflict and tax changes begin to bite

Australian housing prices are falling across most major markets, with Brisbane, Adelaide and Perth all off their recent highs and national median home values down about $19,000 from March. The downturn is being linked to higher interest rates, weaker buyer demand, the Middle East conflict, and recent tax changes that reduced investor concessions. NAB reported a 15% decline in home-loan applications from Q1 to the June quarter, while auction clearance rates have started to recover from a June low. The RBA said it was surprised by the speed of the slowdown but does not expect further rate hikes at its next meeting on 11 August. The article suggests softer housing demand and lower prices could weigh on consumer sentiment and property-related economic activity, but negative equity and repayment stress remain limited so far.