Canberra’s house prices have taken the largest fall on record, currently down 5.8 per cent over the September quarter and around $70,000 below the December 2021 price peak, according to Domain’s latest Quarterly House Price Report.

However, the average house price in Canberra still sits above the one million mark at $1,096,114 – substantially higher than before the pandemic property boom.

Prices would need to plummet by $320,000 (a further 29.9 per cent) to fall back to average pre-pandemic prices.

Canberra’s unit prices are now 4.2 per cent below the June 2022 price high, and down by around $25,000, recording the steepest price fall in two and a half years.

Despite seeing such a significant drop, unit prices remain 4.6 per cent higher than one year ago.

Nationally, interest rates are rising at the fastest rate since 1994, which Domain reports has had a glaringly evident impact over the September quarter.

Many potential home buyers and borrowers have never experienced anything like this before, which has significantly impacted consumer sentiment.

Strong inflation levels and interest rate increases have damaged borrowing activity and increased home loan costs, adding an additional $1,482 per month to a $1 million home loan.

A downturn could be exacerbated by today’s high household debt and households vulnerable to rising interest rates.

Australia’s combined capital city average house price sits at $1,022,194 for the September quarter – a drop of 4.0 per cent since the June quarter.

Year on year, the combined capital average price is up by 2.3 per cent on 2021.

Sydney and Melbourne recorded similar price declines to Canberra and are still the only capital cities to have a seven-digit average figure.

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