Home values fell 0.7% in July: the biggest monthly fall since December 2022
Australian home values fell 0.7% in July 2026, according to Cotality's national index. It is the largest one month fall since December 2022. The downturn is no longer only in Sydney and Melbourne: Brisbane and Adelaide also fell, and so did regional Australia for the first time in over three years.
The result came out on Monday 3 August. It follows three rate rises this year, a weak run of consumer confidence and the tax changes from the Budget.
Cotality's Head of Research, Gerard Burg, tied the shift to the speed of the change: "These revisions highlight the rapid evolution in the market".
Key facts, results to 31 July 2026
- National: down 0.7% in the month, down 1.9% in the quarter, up 5.3% over the year
- National median dwelling value: $928,421, 2.0% below the March peak
- Sydney down 1.4% and Melbourne down 1.2% in July
- Upper quartile values down 3.2% in three months, the lower tier up 0.3%
- Capital city auction clearance rates below 50% since late May
Source: Cotality Home Value Index, 3 August 2026
City by city
| Monthly change | |
|---|---|
| Sydney | -1.4% |
| Melbourne | -1.2% |
| Canberra | -1% |
| National | -0.7% |
| Brisbane | -0.6% |
| Adelaide | -0.2% |
| Perth | 0.1% |
| Hobart | 0.1% |
| Darwin | 0.8% |
Source: Cotality Home Value Index, results to 31 July 2026
| City | Month | Quarter | Year | Median value |
|---|---|---|---|---|
| Sydney | down 1.4% | down 4.0% | down 2.0% | $1,244,617 |
| Melbourne | down 1.2% | down 3.4% | down 2.8% | $797,354 |
| Brisbane | down 0.6% | down 0.6% | up 14.8% | $1,104,094 |
| Adelaide | down 0.2% | up 0.1% | up 10.5% | $944,909 |
| Perth | up 0.1% | down 0.3% | up 20.5% | $1,029,797 |
| Hobart | up 0.1% | up 1.4% | up 9.3% | $756,951 |
| Darwin | up 0.8% | up 2.4% | up 16.3% | $642,175 |
| Canberra | down 1.0% | down 2.1% | up 1.0% | $883,138 |
| National | down 0.7% | down 1.9% | up 5.3% | $928,421 |
Look at the year column. Sydney and Melbourne are lower than a year ago. Everywhere else is still higher, and Perth is up 20.5%.
Three things worth knowing
The mid sized capitals have turned. Brisbane and Adelaide fell 0.6% and 0.2%. After revisions, Cotality says that is the second month in a row of falls for both. Perth edged up 0.1% after a revised fall in June. Cotality noted that Perth's June result was revised 1.2 points lower once more data came in.
The weakness sits at the top of the market. Upper quartile homes fell 3.2% in three months. The lower price tier gained 0.3%.
Regional markets have followed. The combined regional index fell 0.2%, the first monthly fall since January 2023. Regional New South Wales fell 0.4%. Regional South Australia rose 1.4% and regional Western Australia 0.9%.
What is happening to sellers
Listings are the clue. Total listings were 1.1% below the five year average over the four weeks to 26 July, but across the combined capitals advertised supply was 5.7% above average.
Burg describes a standoff: "There remains a mismatch between the pricing expectations of buyers and sellers". Auction clearance rates in the capitals have stayed below 50% since late May.
What we take from it
A fall of 0.7% is small. The point is the direction and how fast it changed. Earlier this year Sydney and Melbourne were the only weak markets. By the end of July the weakness had spread to most of the country.
For a buyer that means more time and more room, but also tighter lending as rates rise. Before you read a falling market as a bargain, check what a bank will lend you today.
Frequently asked questions
How much did Australian house prices fall in July 2026?
Cotality's national Home Value Index fell 0.7% in July, the largest single month decline since December 2022. The national median dwelling value was $928,421.
Which city fell the most in July 2026?
Sydney, down 1.4%, followed by Melbourne, down 1.2%, and Canberra, down 1.0%. Darwin rose 0.8%.
Are expensive homes falling faster than cheaper ones?
Yes. Upper quartile values fell 3.2% nationally in the three months to July, while the lower price tier gained 0.3%.
Are regional markets falling too?
Yes. The combined regional index fell 0.2% in July, its first monthly decline since January 2023.
Sources
- Cotality Home Value Index, July 2026 results, released 3 August 2026
- Reserve Bank of Australia, cash rate target
This is general information, not financial advice.