Australia’s housing market is coming under pressure as higher interest rates continue to affect borrowers and property demand.

The national value of housing fell by about 1.8 per cent, from $12.77 trillion to $12.54 trillion.

Despite the recent decline, national median house prices have still risen by around 35 per cent since their low point in February 2023.

The latest figures highlight the changing conditions for Australian homeowners and potential buyers.

Economists are also watching forecasts that house prices in major east coast markets, including Sydney and Melbourne, could fall further.

However, the housing market remains difficult for many Australians, particularly those trying to enter the market for the first time.

The latest figures suggest that interest rates are only one part of a much bigger story shaping Australia’s housing affordability crisis.