Australia Home Prices Post Biggest Drop Since 2022

2026-08-02 23:07 By Joshua Ferrer 1 min. read

Australia’s Cotality Home Value Index dropped 0.7% month over month in July 2026, marking the sharpest monthly decline since December 2022 and accelerating from a 0.4% fall in the previous month.

The downturn was driven by higher borrowing costs, affordability pressures, and weaker consumer sentiment that continued to weigh on housing demand.

Among the major capitals, Sydney and Melbourne continued to lead the losses, with home values falling 1.4% and 1.2%, respectively.

The weakness also spread to previously resilient markets, with Brisbane declining 0.6% and Adelaide slipping 0.2%, marking their second straight monthly decline, while Perth posted a modest 0.1% gain after contracting in June.

Regional markets also softened, with the combined regional index falling 0.2%, its first monthly decline since January 2023.

Despite the monthly setback, Australian home prices remained 5.3% higher than a year ago in July.



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Australia Home Prices Post Biggest Drop Since 2022
Australia’s Cotality Home Value Index dropped 0.7% month over month in July 2026, marking the sharpest monthly decline since December 2022 and accelerating from a 0.4% fall in the previous month. The downturn was driven by higher borrowing costs, affordability pressures, and weaker consumer sentiment that continued to weigh on housing demand. Among the major capitals, Sydney and Melbourne continued to lead the losses, with home values falling 1.4% and 1.2%, respectively. The weakness also spread to previously resilient markets, with Brisbane declining 0.6% and Adelaide slipping 0.2%, marking their second straight monthly decline, while Perth posted a modest 0.1% gain after contracting in June. Regional markets also softened, with the combined regional index falling 0.2%, its first monthly decline since January 2023. Despite the monthly setback, Australian home prices remained 5.3% higher than a year ago in July.
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