02.08.202623:07:16UTC+00Australia Home Prices Post Biggest Drop Since 2022

Australia’s Cotality Home Value Index fell 0.7% month-on-month in July 2026, the steepest monthly decline since December 2022 and a clear acceleration from the 0.4% drop recorded in June. The downturn reflected the impact of higher borrowing costs, mounting affordability constraints, and weaker consumer sentiment, all of which continued to dampen housing demand.

Among the major capitals, Sydney and Melbourne again led the declines, with home values falling 1.4% and 1.2%, respectively. The weakness also broadened to markets that had previously been more resilient: Brisbane declined 0.6% and Adelaide slipped 0.2%, each recording a second consecutive monthly fall. Perth edged up 0.1%, partially recovering after a contraction in June.

Regional housing markets softened as well, with the combined regional index down 0.2%—its first monthly decline since January 2023. Despite the latest monthly setback, Australian dwelling values in July were still 5.3% higher than a year earlier.