Australian Housing Market Declines Further in August

Australia's housing market continues to decline in August, with home prices falling by 0.9% from July, according to data released by property consultant Cotality.

The largest declines were seen in Sydney and Melbourne, which fell by 1.4% and 1.1%, respectively, leaving prices down about 7% from their peaks.

Economists warn that the decline in housing prices will weigh on economic growth, with AMP's chief economist Shane Oliver predicting a peak-to-trough home price fall of 10% in this cycle.

The Reserve Bank of Australia (RBA) has raised interest rates three times this year to 4.35%, and markets are fully pricing in another hike this year after a hot inflation print for July.