A fifth month of falling home values: 93% of capital city suburbs are down
Australian home values fell 0.9% in August 2026, the fifth month in a row, and now sit 3.6% below the March peak. Over winter the share of capital city suburbs recording a fall more than doubled, from 45.8% to 93%. Sydney is furthest from its high, 7.1% down since February.
Winter did what a single month could not. It showed how wide the fall had become.
Cotality's research director, Tim Lawless, put it plainly: "What started as a more concentrated easing across higher value segments has now become a much more generalised softening". Nearly every capital city suburb is in the same direction now.
Key facts, results to 31 August 2026
- National: down 0.9% in the month, down 3.1% in the quarter, up 2.7% over the year
- National median dwelling value: $912,885
- 93% of capital city suburbs fell over three months, up from 45.8% in autumn
- Sales: 15.5% lower than a year ago and 11.5% below the five year average
- Capital city listings: 24% higher than a year ago over the four weeks to 30 August
Source: Cotality Home Value Index, 1 September 2026
City by city
| Monthly change | |
|---|---|
| Sydney | -1.4% |
| Melbourne | -1.1% |
| Canberra | -1.1% |
| Brisbane | -1% |
| National | -0.9% |
| Adelaide | -0.8% |
| Perth | -0.8% |
| Hobart | -0.2% |
| Darwin | 0.6% |
Source: Cotality Home Value Index, results to 31 August 2026
| City | Month | Quarter | Year | From peak | Median value |
|---|---|---|---|---|---|
| Sydney | down 1.4% | down 4.7% | down 4.6% | down 7.1% | $1,222,718 |
| Melbourne | down 1.1% | down 3.9% | down 4.7% | down 6.8% | $786,718 |
| Brisbane | down 1.0% | down 2.7% | up 10.8% | down 2.7% | $1,080,142 |
| Adelaide | down 0.8% | down 1.6% | up 8.6% | down 1.6% | $937,207 |
| Perth | down 0.8% | down 3.2% | up 15.6% | down 3.2% | $999,987 |
| Hobart | down 0.2% | down 0.2% | up 8.1% | down 1.1% | $752,397 |
| Darwin | up 0.6% | up 0.9% | up 14.6% | at its peak | $647,259 |
| Canberra | down 1.1% | down 2.8% | down 0.4% | down 5.2% | $864,998 |
| National | down 0.9% | down 3.1% | up 2.7% | down 3.6% | $912,885 |
Only Darwin is still rising. The mid sized capitals are not far behind Sydney: Adelaide and Perth fell 0.8% in the month.
Three things in the report
Sydney is falling faster than in the last downturn. It is 7.1% below its February peak. At the same stage of the 2022 to 2023 correction it was 6.6% down.
The gap between cheap and expensive homes is closing. Higher value homes still fall more, but the lower price tier is now falling too. Lawless said "lower priced housing is becoming less insulated as affordability pressures and softer demand weigh more evenly across the market".
Regional markets are slipping. The regional index fell 0.4% in August and is 1.2% lower through winter. Regional South Australia was the only broad rest of state market not to fall over three months.
Why stock is building
New listings are down 6% on a year ago, so sellers are not flooding the market. But advertised stock is up because homes are selling more slowly.
Lawless explained: "Higher advertised stock levels are simply a factor of a slower rate of absorption". Sales volumes are down by more than 20% in some cities against a year ago.
His summary of the mood: longer selling times, larger vendor discounting and low clearance rates "all point to a buyer's market, yet buyers are lacking the confidence to transact at the moment".
What we take from it
Winter closed with a buyer in a stronger position than at any point this year. There is more stock, more time to decide, and sellers adjusting.
But the same pressures that lower prices lower borrowing power. Check your own limit before treating the fall as a discount.
For what the Reserve Bank has said about rates, see the August hold. For the month before this one, see the July fall.
Frequently asked questions
How much did Australian home values fall in August 2026?
Cotality's national Home Value Index fell 0.9% in August, the fifth consecutive monthly decline, taking values 3.6% below the March 2026 peak. The national median dwelling value was $912,885.
What share of suburbs are falling?
93% of capital city suburbs recorded a fall over the three months to August, up from 45.8% in autumn.
How far has Sydney fallen from its peak?
Sydney values are 7.1% below the February 2026 peak, after a 1.4% fall in August. Cotality says the fall is outpacing the equivalent stage of the 2022 to 2023 correction, which was 6.6%.
Is it a buyers market?
Cotality's research director said longer selling times, larger vendor discounting and persistently low auction clearance rates all point to a buyer's market, but that buyers are lacking the confidence to transact.
Sources
- Cotality Home Value Index, August 2026 results, released 1 September 2026
This is general information, not financial advice.