Business · Economy · 2 hrs ago
Australian home prices fall for seventh month at fastest pace in 40 years
Australian home prices fell for a seventh straight month in October, with the national index down 1.2%.
Cotality says values are now 6.7% below their March peak, and the median dwelling is worth $884,855.
The pace of the decline is the fastest in 40 years, according to the property research group.
In the capital cities, prices have fallen 8.1% in seven months, close to the previous record decline of 8.2% from 2017 to 2019.
Higher interest rates have reduced buyers’ borrowing power, while changes to property tax breaks have also weakened investor demand.
Home sales over the past three months were 23% lower than a year earlier, and homes are taking longer to sell.
Further falls are expected, while buyers may wait for a clear signal from the Reserve Bank of Australia that interest rates are likely to move down; economists say that may not come until the latter half of 2027.
Australian home values fell for a seventh consecutive month in October, with the pace of decline the fastest in 40 years.
Cotality said national home values were 6.7% below their March peak, while combined capital city values were down 8.1%.
The median national dwelling value fell by about $63,400 to $884,855.
Brisbane and Perth led October’s declines among capital cities, and values also fell across most suburbs in Adelaide.
Higher mortgage rates and weaker investor demand linked to federal tax changes have reduced buyer demand.
- Who
- Australian homeowners and property buyers are affected. Cotality reported the price data.
- What
- Home values fell for a seventh consecutive month, with the decline tracking at its fastest pace in 40 years.
- When
- In October 2026, following six consecutive monthly falls.
- Where
- Across Australia, including the capital cities.
- Why
- Higher interest rates have reduced borrowing capacity and raised mortgage repayments. Weaker investor demand, partly linked to federal property tax changes, has also weighed on prices.
This story does not have two clearly opposing sides.
Cotality’s national Home Value Index reached its peak before the subsequent decline.
National home values fell 1.2% for the month and stood 6.7% below their March peak.
The Reserve Bank was expected to decide whether to raise interest rates again.
- Monthly decline
- 1.2% in October, nationally
- Decline from March peak
- 6.7%, or about $63,400
- Median national dwelling value
- $884,855
- Capital city decline
- 8.1% over seven months, according to Cotality
- Largest October capital-city falls
- Brisbane 2%; Perth 1.7%
4 sources
What people are saying
The mid-sized capitals, where home values recorded extreme growth conditions over the past six years, are now well and truly in a correction.
This is really a demand-led downturn
We are already on track to see the largest downturn across the last 40 years
The downturn is just part of a normal housing cycle, driven by interest rates, which are having a negative wealth effect