National home values post their sharpest monthly fall since December 2022, with Brisbane and Adelaide joining Sydney and Melbourne in decline
Australia's housing market recorded its steepest monthly decline in more than two and a half years in July, with Cotality's national Home Value Index (HVI) falling 0.7%.
Sydney and Melbourne remained the hardest-hit capitals, with values down 1.4% and 1.2% respectively over the month. Melbourne values peaked in November last year; Sydney's high point was reached in January.
The downturn spread further in July, with Brisbane and Adelaide posting monthly declines of 0.6% and 0.2% respectively. Historical revisions show this was the second consecutive month of falls for both cities.
Perth recorded a marginal 0.1% gain following a revised 0.5% contraction in June. The breadth of declines marks a sharp reversal from the stronger conditions seen across the December and March quarters.
| City / Region | Change in dwelling values | ||||
|---|---|---|---|---|---|
| Month | Quarter | Annual | Total return | Median value | |
| Sydney | -1.4% | -4.0% | -2.0% | 1.0% | $1,244,617 |
| Melbourne | -1.2% | -3.4% | -2.8% | 0.7% | $797,354 |
| Brisbane | -0.6% | -0.6% | 14.8% | 18.6% | $1,104,094 |
| Adelaide | -0.2% | 0.1% | 10.5% | 14.4% | $944,909 |
| Perth | 0.1% | -0.3% | 20.5% | 25.2% | $1,029,797 |
| Hobart | 0.1% | 1.4% | 9.3% | 14.1% | $756,951 |
| Darwin | 0.8% | 2.4% | 16.3% | 23.5% | $642,175 |
| Canberra | -1.0% | -2.1% | 1.0% | 5.2% | $883,138 |
| Combined capitals | -0.9% | -2.5% | 3.9% | 7.3% | $1,010,814 |
| Combined regional | -0.2% | -0.1% | 9.7% | 14.4% | $769,867 |
| National | -0.7% | -1.9% | 5.3% | 8.9% | $928,421 |
| Source: Cotality Home Value Index, July 2026 | |||||
Higher-priced properties have been most exposed to the correction. Upper-quartile values fell 3.2% nationally over the three months to July, against a 0.3% gain in the lower price tier.
"These revisions highlight the rapid evolution in the market, particularly across the mid-sized capitals," said Gerard Burg (pictured right), head of research at Cotality. "Perth in particular has seen significant shifts, with June growth revised 120 basis points lower in our latest update, which pulled the once-booming city into negative territory for that month."
Demand has pulled back under the combined weight of affordability constraints, mortgage serviceability pressures, three cash rate increases this year, higher fuel costs, and subdued consumer confidence linked to the Iran conflict and federal Budget policy changes. Seller behaviour is beginning to adjust, though the response has lagged the fall in buyer activity.
"This adjustment is most evident in our weekly listings data," Burg said. "We have observed a deterioration in the flow of new listings across the country in recent weeks, led by Sydney, as potential vendors assess a weak market and choose to wait until conditions improve. However, this trend has lagged the decline in demand, as evidenced by total listings numbers that have continued to track higher."
Total advertised stock nationally sat 1.1% below the five-year average in the four weeks to 26 July, compared with 25.9% below average in mid-January. Across the combined capitals, supply is now running 5.7% above the seasonal norm.
"There remains a mismatch between the pricing expectations of buyers and sellers," Burg said. "Capital city auction clearance rates have remained below 50% since late May, although they have moved up from the low 40s range in mid-to-late June."
Regional markets, which had outperformed capital cities since the October 2025 peaks, also came under pressure. The combined regional index declined 0.2% in July — its first monthly fall since January 2023.
Regional NSW recorded the weakest result, down 0.4%, followed by regional Victoria and regional Queensland, each off 0.3%. Regional South Australia and regional Western Australia bucked the trend, with values rising 1.4% and 0.9% respectively.
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