All eyes on the spring selling season following winter cooldown

National home prices have fallen for a fifth straight month, data from realestate.com.au shows. The spring selling season will be an important test for the market.National home prices declined 0.2% over the month and are now 2.7% below their March 2026 peak according to the latest realestate.com.au Home Price Index.Despite the recent falls, prices remain 1.8% higher than a year ago and 27.5% higher than five years ago, though annual growth is moderating sharply.Home prices are likely to fall further over the coming months, particularly across the capital cities.Inflation has increased the risk of another interest rate riseThe RBA left the cash rate unchanged at 4.35% in August, following 75 basis points of increases earlier this year. The Bank has made clear that inflation remains too high and that it remains concerned about upside risks.Higher interest rates have already reduced borrowing capacities and weakened housing demand, while the latest inflation data has increased the possibility that interest rates lift again before the end of the year.Interest rates remain the dominant headwind on the housing market. Picture: GettyHeadline CPI inflation eased from 3.8% to 3.5% year-on-y...