Australia’s long-running property boom may be losing momentum, with experts warning that falling house prices could bring both opportunities and risks.

While lower prices could make home ownership more affordable for first-home buyers, existing homeowners may see the value of their properties decline.

Those who recently purchased homes with small deposits could face the risk of negative equity, where they owe more on their mortgage than the property is worth.

Economists say a moderate correction could improve housing affordability, but a sharp downturn could hurt consumer confidence and slow the broader economy.

The outcome will largely depend on interest rates, employment and the strength of Australia’s housing market in the months ahead.