Weekly Real Estate News
Australian home values fell 1.2% in October, extending a nationwide downturn to seven consecutive months as rising borrowing costs and weakening buyer demand continued to pressure the property market.
The decline left national dwelling values 6.7% below their March 2026 peak, wiping approximately A$63,400 from the value of a typical home, according to Cotality’s November 2 housing-market report. The figures describe October transactions and valuations through October 31; the report was released November 2 in Australia.
Capital-City Decline Approaches Previous Record
Combined capital-city dwelling values fell 8.1% over seven months, an unusually rapid decline compared with previous downturns. Cotality said values fell 7.0% over the same interval during the 2022–2023 correction. The 2017–2019 downturn, previously the largest peak-to-trough capital-city decline in the firm’s 40-year comparison, totaled 8.2% over its entire duration.
That means the current correction is close to the earlier record in cumulative terms, but it has not yet surpassed the previous 8.2% peak-to-trough decline. The distinction matters because the current decline’s speed is historically exceptional while its eventual size remains unknown.
Brisbane and Perth Lead October Losses
Brisbane home values fell 2.0% in October, followed by Perth at 1.7% and Sydney at 1.6%. Over the latest three months, Brisbane and Perth recorded declines of 6.1% and 5.7%, respectively. Cotality said nearly every suburb in Brisbane, Perth and Adelaide had recorded lower values over the quarter.
The research firm’s national Home Value Index is designed to measure changes in the value of residential property, rather than simply tracking the median price of homes that happen to sell in a given month.
Sales Slow as Buyers Gain Bargaining Power
Cotality estimated home sales over the three months through October were 23% lower than a year earlier and 18% below the preceding five-year average. Sydney sales were down 30% from a year earlier and Brisbane sales declined 29%.
Auction clearance rates across the combined capital cities were consistently below 50%. Median selling time reached 39 days, the longest since August 2020, while average vendor discounting rose to 4.7%, its highest level since May 2019. Listings were at their highest seasonal level since 2019, even though new listings remained below average.
Cotality research director Tim Lawless attributed the weakness to affordability and debt-servicing pressures, four interest-rate increases, low confidence and cost-of-living challenges. The report also cautioned that substantial gains before the downturn leave many owners with significant equity buffers, particularly in Perth and Brisbane.
Why the International Downturn Matters
Australia’s housing market offers a contemporary example of how higher mortgage costs can affect sales volumes and home values even when housing supply remains constrained. The figures do not establish a comparable trajectory for U.S. home prices, where financing structures, local market conditions and monetary policy differ.
Simple Content Summary
Cotality reported that Australian home values fell 1.2% in October 2026, their seventh consecutive monthly decline. Combined capital-city values have dropped 8.1% in seven months, approaching the 8.2% peak-to-trough decline recorded in 2017–2019. Brisbane and Perth led October’s losses, while national home sales were estimated to be 23% lower than a year earlier.
