Houses at Sydney’s top end are expected to take the biggest hit, while Melbourne’s median could slip below $1 million in 2026-27.

Prices in Sydney and Melbourne could fall by 8 per cent by the end of the year as auction clearance rates slump to near the lowest on record.

Economists believed house prices were going to fall even before the budget’s tax changes. Now there’s a price tag on those falls – up to $100,000.