Australia’s property market is entering a very different phase from the strong growth seen over recent years. Falling prices, higher interest rates, weaker auction conditions and changing buyer confidence are creating uncertainty for homeowners and investors.

In this episode of The CEO Breakdown, Latitude Accountants’ John Saade discussed his prediction that Sydney property prices could fall by as much as 20% from their peak. Headlines have since highlighted significant declines, although it is important to remember that an annualised rate of decline is not the same as a guaranteed future fall.

The bigger question for buyers is not simply whether property prices will fall further. It is whether the current correction creates an opportunity — and whether buying now makes financial sense for their individual circumstances.

So, should you buy now or wait?

What Is Happening in the Australian Property Market?

The Australian housing market has clearly lost some of its previous momentum.

According to the August 2026 PropTrack Home Price Index, national home prices fell 0.2% during August, marking the fifth consecutive monthly decline. Prices were 2.7% below their March 2026 peak, although they remained 1.8% higher than a year earlier and 27.5% higher than five years earlier.

Capital city markets have experienced more pressure than regional markets. Combined capital-city prices fell 0.3% in August and were 3.6% below their peak.

This highlights an important point: the Australian property market is not one single market.

Conditions can vary significantly between:

• States and capital cities
• Suburbs
• Houses and units
• Established properties and new developments
• High-demand and low-demand locations

For this reason, national headlines should not be the only factor considered when deciding whether to buy.

Could Property Prices Fall Further?

John Saade’s view is that Sydney could experience a peak-to-trough decline of around 20%. However, that is a prediction rather than a certainty.

Property forecasts should always be treated cautiously because markets can change as interest rates, employment, migration, supply and buyer confidence change.

Recent data already shows that the correction is occurring. Sydney and Melbourne have been among the markets experiencing the greatest pressure, while some other capital cities have continued to perform more strongly.

The key lesson is that buyers should avoid making decisions based entirely on predictions such as “prices will fall 20%” or “the market has already bottomed”.

Instead, consider the fundamentals of the specific property.

Why National Property Data Does Not Tell the Whole Story

A national or city-wide median can hide substantial differences between individual suburbs.

Before purchasing, buyers should investigate factors such as:

• Recent comparable sales
• Local demand
• Days properties are spending on the market
• Auction clearance conditions
• Local infrastructure
• Employment opportunities
• Rental demand
• Comparable properties currently listed for sale
• The property’s long-term suitability

This approach can provide a much clearer picture than simply following national headlines.

Why Falling Property Prices Can Create Opportunities

A declining market is not automatically bad news for every buyer.

In fact, falling prices can create opportunities for people who have the financial capacity and patience to negotiate.

John Saade highlighted an example from a Latitude client who purchased a roughly 550-square-metre block in Bankstown for around $250,000 below the asking price after the market had already adjusted.

The important lesson was not that every property will suddenly become a bargain.

It was that market corrections can increase negotiating power for buyers who know what they are looking for.

When fewer buyers are competing for properties, sellers may become more willing to negotiate on price and terms.

However, a lower purchase price does not automatically make a property a good investment.

What Should You Consider Before Buying During a Correction?

Buying during a falling market requires more than simply finding a property that is cheaper than it was six months ago.

1. Can You Afford the Property at Higher Interest Rates?

Higher interest rates can reduce borrowing capacity and increase mortgage repayments.

Before purchasing, buyers should consider whether they can comfortably manage repayments if rates remain elevated for longer than expected.

2. Is the Property Actually Good Value?

A property falling in price does not necessarily mean it is undervalued.

Look at comparable sales and the characteristics of the property rather than relying on its previous asking price.

3. Are You Buying for the Right Reason?

Property decisions should generally be based on your financial position and long-term objectives rather than fear of missing out.

Ask yourself:

• Is this a home or investment?
• How long do you expect to hold it?
• Does it fit your financial strategy?
• Can you handle unexpected costs?
• Does the property have strong fundamentals?

4. Have You Allowed for Additional Costs?

The purchase price is only one part of the financial commitment.

Depending on the circumstances, buyers may need to account for:

• Stamp duty
• Legal and conveyancing costs
• Loan costs
• Insurance
• Repairs and maintenance
• Council rates
• Land tax where applicable
• Property management costs for investors

These costs can materially affect the overall financial outcome.

Should You Buy Now or Wait?

There is no universal answer.

Waiting could allow a buyer to purchase at a lower price if the market continues to fall. However, waiting also carries risks. Prices could stabilise, competition could return, or borrowing conditions could change.

Buying now could provide an opportunity to negotiate in a softer market, but it also means accepting the possibility that the property may decline further after purchase.

The better question is:

Does the property make sense at today’s price and under your current financial circumstances?

If the answer is yes, a falling market does not necessarily mean you should stay on the sidelines.

On the other hand, if buying would stretch your cash flow or leave you financially vulnerable, waiting may be the more appropriate decision.

Why Professional Financial Advice Matters During a Property Correction

Property decisions can affect your finances for many years, particularly when borrowing is involved.

An accountant can help you understand how a property purchase may interact with your broader financial and tax position.

For investors and business owners, this may include considering:

• Cash flow
• Borrowing capacity
• Tax implications
• Ownership structures
• Investment strategy
• Existing debt
• Asset protection considerations
• Long-term financial goals

The purpose of professional advice is not to predict exactly where property prices will go next. It is to help you make a decision that remains financially sensible even when the market is uncertain.

Final Thoughts: Focus on the Deal, Not the Headline

Australia’s property market is going through a correction, and further declines are possible. Current data shows that prices have already fallen from their recent peaks, particularly across several capital-city markets.

But a falling market does not mean every property is a bad investment — just as a rising market does not mean every property is a good one.

John Saade’s discussion highlights an important principle for buyers: market conditions can create opportunities, but only when the numbers make sense.

Rather than trying to perfectly time the bottom of the market, focus on finding the right property at a price you can afford, with a financial strategy that can withstand further changes in interest rates and property values.

Frequently Asked Questions About the Australian Property Market Correction

Is the Australian property market currently falling?

Yes. National home prices fell for the fifth consecutive month in August 2026, according to PropTrack. However, the size of the decline varies significantly between markets.

Could Sydney property prices fall by 20%?

John Saade has predicted a potential 20% peak-to-trough decline in Sydney. This remains a forecast rather than a guaranteed outcome.

Is a falling property market a good time to buy?

It can be, particularly for financially prepared buyers who can identify good-value properties and negotiate effectively. However, buying during a correction still carries risks.

Should I wait for property prices to reach the bottom?

Trying to identify the exact bottom is extremely difficult. A better approach is to assess whether the property is fairly priced and whether the purchase fits your financial circumstances and long-term goals.

Should I speak to an accountant before buying an investment property?

Professional advice can help you understand the potential tax, cash-flow, ownership and structural considerations before committing to a property purchase.

Speak to Latitude Accountants

If you are considering buying property, investing during the current market correction or reviewing your broader financial and tax position, professional advice can help you make a more informed decision.

Latitude Accountants provides accounting, taxation, business advisory, superannuation and structural advice for Australian individuals and business owners.

Book a free consultation with Latitude Accountants to discuss your circumstances and understand how your property or investment decision may fit into your broader financial strategy.

📍 Sydney Olympic Park | Marrickville | Melbourne | Loxton
📞 1300 706 597
📧 info@latitudeaccountants.com.au

Disclaimer

This article provides general information only and does not constitute financial, investment, tax or legal advice. Property markets and individual financial circumstances vary. You should obtain professional advice appropriate to your circumstances before making property or investment decisions.