Home values fall for seventh consecutive month as interest rates dent demand
News Source
β’Sun, 01 Nov 2026 14:00:18 GMT
π° What Happened
Australian home values fell for a seventh month in a row in October. New figures from Cotality show capital city prices dropped 1.4 per cent in the month and 8.1 per cent since March.
The slump is no longer just a Sydney and Melbourne story. Brisbane and Perth led the October falls. Tim Lawless from Cotality said nearly every suburb in Brisbane, Perth and Adelaide has lost value in the past three months.
The Reserve Bank meets on Tuesday, and a fifth rate rise this year is widely expected.
π The Backstory
The Reserve Bank lifts interest rates to slow spending and bring down inflation. Higher rates make mortgages more expensive, so buyers can borrow less and prices usually ease.
Prices had climbed steeply for years, especially in the mid-sized capitals. Brisbane, Perth and Adelaide boomed during the pandemic as people left the big cities.
Most owners are still ahead. Even after this fall, values remain far above where they were before the boom.
π― Why It Matters
If you are buying a home, prices are easing but loans cost more. If you already own one, your next rate bill matters more than the headline price.
Australian home values fell for a seventh month in a row in October. New figures from Cotality show capital city prices dropped 1.4 per cent in the month and 8.1 per cent since March.
The slump is no longer just a Sydney and Melbourne story. Brisbane and Perth led the October falls. Tim Lawless from Cotality said nearly every suburb in Brisbane, Perth and Adelaide has lost value in the past three months.
The Reserve Bank meets on Tuesday, and a fifth rate rise this year is widely expected.
The Reserve Bank lifts interest rates to slow spending and bring down inflation. Higher rates make mortgages more expensive, so buyers can borrow less and prices usually ease.
Prices had climbed steeply for years, especially in the mid-sized capitals. Brisbane, Perth and Adelaide boomed during the pandemic as people left the big cities.
Most owners are still ahead. Even after this fall, values remain far above where they were before the boom.
If you are buying a home, prices are easing but loans cost more. If you already own one, your next rate bill matters more than the headline price.