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The housing market downturn has deepened, with home values nationally recording their biggest monthly fall in three and a half years. Analysts say the market is facing the perfect storm with rising interest rates and tax changes. The government says it's helping to balance things out for first homeowners.

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00:02As another property hits the market, the fear of missing out has given way to a far more cautious mood.
00:09It's a little bit flat at the moment and there's a lot of properties that I've noticed that aren't moving.
00:15Buyers are becoming more discerning at this stage.
00:17They will only act when they feel the property is right for them.
00:21Nationally, home prices fell 0.4% in June, but they're still 7.3% higher over the year.
00:27The median home value has dipped to almost $938,000.
00:32Sydney and Melbourne were the biggest losers, followed by Canberra.
00:36Bucking the trend, Darwin led the monthly gains.
00:39Perth, Hobart, Brisbane rose slightly as well.
00:41Building approvals have also fallen, down 1.1% in May.
00:45We've seen a perfect storm on the demand side.
00:48Affordability and serviceability of mortgages was a constraint.
00:51We've subsequently seen three rate rises from the Reserve Bank.
00:54We've seen the impact of the Iran conflict on energy prices.
00:58And now more recently, we've seen the investor policy changes in the budget hitting it.
01:02The Prime Minister says the government's tax changes are helping to level the playing field.
01:07Treasury estimates are that there'll be an increase in the value of homes,
01:14but it'll be slightly lower than it would have been without these measures.
01:18Over time, it should help make it a little easier for first-time buyers to enter the market.
01:24Adding to affordability challenges, the Reserve Bank Governor has made it clear the fight against inflation isn't over.
01:31And while interest rates were unchanged in June, the market still thinks there's a chance of another rate hike before
01:37the end of the year.
01:39Intensifying the pressure for buyers.
01:40It's a little bit scary, I guess.
01:43You know, there's talk of it crashing and going down.
01:46But I guess we're hopeful.
01:48Hopes for a slowdown, but not a wipeout.
01:50A Adriano
01:50Is a difficult tweet to the side.
01:51Plus the remaining of the PM's of the AMO2X.
01:52Again, you know what it is.
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