Australia Home Prices Stall in May

2026-05-31 23:44 By Joshua Ferrer 1 min. read

Australia’s Cotality Home Value Index was unchanged in May 2026, after rising 0.3% in the previous month.

The latest reading marked the weakest monthly result in a year as the housing cycle continued to lose momentum across most markets.

The slowdown had been building for some time and was further reinforced by higher borrowing costs, ongoing geopolitical uncertainty linked to the Middle East conflict, and new tax measures announced in the Federal Budget, all of which have tightened affordability and reduced serviceability for borrowers.

Sydney and Melbourne led the downturn, with dwelling values falling 0.9% and 0.8%, respectively, leaving values 2.1% and 2.9% below their cyclical highs reached in November 2025.

Elsewhere, home prices continued to rise, albeit at a slower pace.

Perth and Darwin recorded the strongest monthly gains at 1.5%, followed by Brisbane and Hobart at 0.9%, while Adelaide advanced 0.5%.



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Australia Home Prices Stall in May
Australia’s Cotality Home Value Index was unchanged in May 2026, after rising 0.3% in the previous month. The latest reading marked the weakest monthly result in a year as the housing cycle continued to lose momentum across most markets. The slowdown had been building for some time and was further reinforced by higher borrowing costs, ongoing geopolitical uncertainty linked to the Middle East conflict, and new tax measures announced in the Federal Budget, all of which have tightened affordability and reduced serviceability for borrowers. Sydney and Melbourne led the downturn, with dwelling values falling 0.9% and 0.8%, respectively, leaving values 2.1% and 2.9% below their cyclical highs reached in November 2025. Elsewhere, home prices continued to rise, albeit at a slower pace. Perth and Darwin recorded the strongest monthly gains at 1.5%, followed by Brisbane and Hobart at 0.9%, while Adelaide advanced 0.5%.
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