Australia house prices have slipped in several capitals and regions as the market downturn broadens, with new figures showing declines since May.
New Cotality data released on Monday indicates prices have fallen across most of the country since May as momentum cools.
Brisbane’s median price has dropped about $8,000 since May, returning to its March level of $1.1m. The city’s dwelling values had climbed for 40 consecutive months from February 2023 before turning lower in June.
Adelaide and Perth medians are each down about $4,000 from their May peaks, to $944,000 and $1.03m respectively.
In June, regional Australia posted its first overall decline in home values since January 2023. Across July, regional values fell or were flat in every state.
Nationally, the median home price stands at $928,000, about $19,000 below the March peak.
Sydney, Melbourne and Canberra medians have fallen by $69,000, $39,000 and $22,000 respectively since February. Prices in Sydney and Melbourne remain above their January 2025 levels, and Canberra’s values are above where they were in September 2025.
The Reserve Bank has reported that fewer than 1% of borrowers are in negative equity, with loan balances exceeding property values, and an even smaller share are behind on repayments.
According to officials, the housing market has cooled since February, when the Reserve Bank of Australia began raising interest rates and conflict in the Middle East intensified. Demand weakened further after the May federal budget reduced property investor tax concessions.
NAB on Thursday reported a 15% decline in home loan applications between the first quarter of 2026 and the three months to June. Westpac, Equifax and Loan Market have separately reported softer mortgage demand.
RBA governor Michele Bullock told an Anika Foundation event on Wednesday that the drop in house prices and demand since May was sharper than expected. She said rates are only “a bit” restrictive and linked the downturn primarily to reduced buyer appetite.
“I expect that things will settle down,” Bullock said. “People will get used to the new rules. Hopefully the conflict overseas will die down, and they’ll get a bit more confidence. Prices might lower a bit. People might feel more confident to come back into the market.”
There are early signs of adjustment among buyers and sellers. Auction clearance rates rose to 53.6% over the weekend from a June low of 47.4%, based on Cotality’s preliminary figures. The research firm also noted a decline in new listings through July as vendors delayed sales in response to weak conditions.
The RBA is not expected to lift interest rates at its next board meeting on 11 August.
Australia house prices outlook
Market participants are watching whether stabilising auction activity and tighter listings will support prices, or whether softer borrowing and policy shifts will keep downward pressure on values in the months ahead.
The Reserve Bank has reported that fewer than 1% of borrowers are in negative equity, with loan balances exceeding property values, and an even smaller share are behind on repayments.
According to officials, the housing market has cooled since February, when the Reserve Bank of Australia began raising interest rates and conflict in the Middle East intensified. Demand weakened further after the May federal budget reduced property investor tax concessions.
NAB on Thursday reported a 15% decline in home loan applications between the first quarter of 2026 and the three months to June. Westpac, Equifax and Loan Market have separately reported softer mortgage demand.
RBA governor Michele Bullock told an Anika Foundation event on Wednesday that the drop in house prices and demand since May was sharper than expected. She said rates are only “a bit” restrictive and linked the downturn primarily to reduced buyer appetite.
“I expect that things will settle down,” Bullock said. “People will get used to the new rules. Hopefully the conflict overseas will die down, and they’ll get a bit more confidence. Prices might lower a bit. People might feel more confident to come back into the market.”
There are early signs of adjustment among buyers and sellers. Auction clearance rates rose to 53.6% over the weekend from a June low of 47.4%, based on Cotality’s preliminary figures. The research firm also noted a decline in new listings through July as vendors delayed sales in response to weak conditions.
The RBA is not expected to lift interest rates at its next board meeting on 11 August.
Market participants are watching whether stabilising auction activity and tighter listings will support prices, or whether softer borrowing and policy shifts will keep downward pressure on values in the months ahead.