August Home Values: Sharp Reduction in National Home Values.

Home values in July continued to see the market downturn significantly, as Brisbane and Adelaide joined larger capital cities in a reduction in national home values. This is the first time Brisbane has seen a drop in median home value in recent years.

What is the Home Value Index (HVI)?

The Home Value Index (HVI)^[1], also known as the Hedonic Home Value Index, leverages recent property sales from each state to track the median value growth of homes nationwide. It serves as a key metric for analysing the performance of the Australian residential property market and is useful when looking at the affordability and investment potential of states and capital cities.

Source: Cotality HVI Report August 2026

State Market Report.

These median values are as of 3rd of August 2026.

Sydney

The median home value decreased by 1.4% to $1,244,617.

Melbourne

The median home value decreased by 1.2% to $797,354.

Brisbane

The median home value has decreased 0.6%% to $1,104,094

Adelaide

The median home value has decreased 0.2% to $944,909

Perth

The median home value has increased 0.1% to $1,029,797

Hobart

The median home value increased 0.6% to $756,951.

Darwin

The median home value has increased 0.8% and is now $642,175.

Canberra

The median home value has decreased 1% to $883,138.

Brisbane

Since 2023, Brisbane has seen 40 consecutive months of median home growth. That ended this month. Brisbane and Adelaide experienced dips of 0.6% and 0.2% respectively, as rising interest rates and high cost of living are impacting buyer demand. Brisbane has experienced an annual growth of 14.8% so far. Could we be at the end of a long and rapid growth cycle.

Larger Cities’ Sharp Downturns.

Sydney, and Melbourne continue to see lower median home values. Melbourne now reports a median value of less than $800,000. Lower pricing could spur on new buyer activity, as entry becomes more accessible and more options become available to home buyers.

What Does This Mean? 

The national housing market has been consistently profitable, however these early headwinds could signal a slowing property market. Annually home bvalues have increased significantly compared to last year, with a 3.9% increase year-to-year in capital cities. Sydney & Melbourne are the only markets to report year-to-year losses.

It’s important to remember the property market moves in a cycle, and while a downturn may happen on occasion, property usually trends upward in the scheme of things.

For home buyers, slight reductions in home values may open up some more opportunities.

[1] Cotality.com. (2026). Housing market downturn deepens as demand headwinds build. [online] Available at: https://www.cotality.com/au/insights/articles/housing-market-downturn-deepens-as-demand-headwinds-build [Accessed 3 Aug. 2026].

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