Australian house prices continued to decline in June, and aren't likely to bottom out until early next year, says Abhijit Surya, senior economist at Capital Economics. Recent housing tax changes have yet to have a significant impact on house prices, with stretched affordability the main driver behind the continuing downturn, he says. The two-speed housing cycle remains alive and well, with the decline in aggregate prices driven almost entirely by Sydney and Melbourne, he notes. But while house prices in midsize capital cities did eke out moderate gains, they too have lost substantial momentum since the start of the year, Surya adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)