June 10th, 2026
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August brought another month of falling home values, with declines recorded across more parts of the housing market.
National property values decreased by 0.9% in August, reaching a median value of $912,885, according to Cotality’s latest data. It marks a fifth consecutive month of decline.
Despite recent easing, the falls are worth putting into perspective. After five months of declines, national home values remain relatively close to their record highs at 3.6% below the March peak.
Values easing across most capital city suburbs
From June to August, home values fell in 93% of capital city suburbs. In the previous three months, that figure was 45.8%.
Every capital city recorded a decline in the past three months, except Darwin where values edged up by 0.9%.
In August, Sydney saw the largest monthly fall, with values down by 1.4%. Melbourne and Canberra both fell by 1.1%, while Brisbane declined by 1.0%.
Affordable homes hold up better, but the gap is narrowing
Higher-value housing continues to see weaker conditions than more affordable properties, with elevated borrowing costs and serviceability constraints affecting buyers at the premium end.
The gap between premium and lower-priced housing is also getting smaller as demand softens across the market.
Lower-priced homes are still generally performing better, but they are no longer as protected from falling values as they were earlier in the year.
Anyone watching the market should remember that market conditions can look quite different depending on where a property is located and what part of the market it sits in.
Regional markets continue to outperform
Regional markets are also maintaining a stronger annual growth rate than the combined capitals.
Combined regional values were up by 7.7% over the past year, compared with 1.1% across the combined capitals. While growth has slowed in both markets, the gap between them has widened.
The combined regional index fell by 0.4% in August, compared with a 0.9% decline nationally.
This suggests regional markets are continuing to show relative resilience, even as conditions soften more broadly.
More choice for buyers
Weaker demand has also given buyers more choice. Cotality estimates that quarterly sales were 15.5% lower than a year ago, while capital city listings were 24% higher over the four weeks ending August 30.
Importantly, the higher level of advertised stock is not being driven by a surge in new listings, which are 8% below the five-year average, suggesting homeowners are feeling little pressure to sell in this market. Instead, homes are taking longer to sell as buyers take their time to commit.
What to expect this spring
Spring usually brings more homes onto the market, although new listings may not rise as strongly as usual this year.
Some prospective vendors may choose to wait for conditions to improve, particularly if selling times continue to lengthen.
At the same time, limited new housing supply, ongoing construction constraints and first home buyer incentives should continue to support demand, particularly at the more affordable end of the market.
As spring gets underway, the market is likely to remain varied. Buyers may have more choice and time to make decisions, while sellers will need to remain realistic about local conditions and pricing expectations.
Disclaimer: The information enclosed has been sourced from Cotality and is provided for general information only. It should not be taken as constituting professional advice.
PropertyMe is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
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