July 1st, 2026
June 2026 housing update: market dips as regional areas continue to outperform
Industry News
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The housing market continued to cool in July, with price falls no longer limited to Sydney and Melbourne. Brisbane and Adelaide also recorded monthly declines, helping push national dwelling values down 0.7%, the biggest monthly drop since December 2022, according to new Cotality data.
Not every property type is being hit the same way. House values are losing momentum faster than units, as more affordable homes continue to attract demand.
The downturn is spreading
The housing slowdown is no longer confined to the largest cities. In July, Brisbane and Adelaide joined Sydney, Melbourne and Canberra in recording monthly declines, signalling the market weakness is becoming more widespread.
Even the capitals that remained in positive territory lost momentum. Perth edged up by just 0.1% after stronger gains in June, while Hobart and Darwin also posted slower monthly growth.
The trend is also emerging beyond the capitals. Combined regional property values decreased by 0.2% in July, their first monthly decline since January 2023. The shift suggests affordability pressures and higher borrowing costs are now weighing on housing markets across much of the country, not just the largest capitals.
Houses are feeling the slowdown more than units
The market downturn has been more pronounced for houses than units. National house values fell 0.8% in July, compared to a 0.5% decline for units. The pattern was evident across almost every capital city, with Hobart the only exception where houses outperformed units over the month.
Sydney and Melbourne saw the biggest gap. House values dropped by 1.7% in Sydney and 1.4% in Melbourne, compared to declines of 0.8% and 0.7% respectively for units. Brisbane, Adelaide and Canberra also recorded larger monthly falls for houses than units.
Despite the sharper monthly decline, houses still lead over the year, with national house values up by 5.7% compared to 3.9% for units. Those stronger annual gains reflect the earlier upswing, but the recent data suggests houses are now giving back those gains more quickly.
Affordability is shaping the market
The relative strength of units reflects a broader shift towards more affordable housing, as buyers adjust to higher borrowing costs and stretched budgets.
Cotality’s data shows the downturn remains concentrated in higher-value properties. National upper-quartile home values fell by 3.2% over the three months to July, while lower-priced homes still recorded a modest 0.3% increase.
As higher borrowing costs and affordability pressures continue to weigh on buyers, many are opting for lower-priced homes instead. That has helped support demand for units amid the market slowdown.
Looking ahead
Buyers are likely to remain in a stronger position in the months ahead. With less competition and more choice than earlier this year, those looking to buy are gaining greater negotiating power while sellers face a more challenging market.
At the same time, many homeowners are choosing to delay selling, while low unemployment is reducing the likelihood of forced sales. Combined with ongoing population growth and a limited supply of new housing, fewer new listings could help put a floor under prices.
More price falls are likely in the months ahead, although tight supply and steady demand should help cushion the decline.
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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