Affected by the risk of interest rate hikes, Australia’s home price growth slowed in December, with the two major markets even seeing slight declines, casting a shadow over sentiment and the outlook for this year’s real estate market. Data released Friday by real estate consultancy CoreLogic showed that the major cities’ house price index rose 0.5% month-on-month, but both Sydney and Melbourne saw declines of 0.1%. The mining hub of Perth and the southern city of Adelaide led the gains, both rising 1.9%, followed closely by Brisbane and Darwin, which both rose 1.6%. Reserve Bank of Australia Governor Block has largely ruled out the possibility of further interest rate cuts—following a brief easing cycle between February and August—and warned that interest rates could rise again if inflationary pressures persist. Given that most Australian borrowers have variable-rate mortgages, this policy shift could quickly affect market sentiment.