July Home Values: National Home Values Drop

After months of uninterrupted national growth, June and July have seen national home values take a downturn. The downturn is led by Sydney (-1.2%) and Melbourne (-1.0%), while usually strong growth markets of Brisbane and Perth are wavering, with just 0.3% and 0.7%  increases respectively. Additionally, low auction clearance rates and a drop in home sales suggest the market is cooling fast. Cotality’s Tim Lawless suggests that what sellers are asking for is far from what buyers are willing to pay currently.

“Such low clearance rates indicate a mismatch between buyer and seller pricing expectations. Buyers now have more stock to choose from and less urgency in their decision-making” Mr Lawless said.

Higher cost of living also doesn’t help, and with three cash rate increases already, and another RBA decision next week, buyers are showing up less than they have previously. However a nation 0.4% decrease, alongside low clearance rates, may offer more opportunity and choice to home buyers.

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 July 2026

State Market Report.

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

Sydney

The median home value decreased by 1.2% to $1,265,608.

Melbourne

The median home value decreased by 1% to $808,486.

Brisbane

The median home value has increased 0.3% to $1,118,306.

Adelaide

The median home value has seen no change month-to-month. It currently sits at $945,868.

Perth

The median home value has increased 0.7% to $1,046,551.

Hobart

The median home value increased 0.6% to $752,760.

Darwin

The median home value has increased 1.4% and is now $638,187.

Canberra

The median home value has dipped 0.6% to $885,254.

Mid Size Cities are Wavering.

Brisbane and Perth have led the growth nationally for the better part of two years, however, that rapid growth is easing. Both are million-dollar markets, so any easing is unlikely to have a sizeable impact on affordability, but we may be seeing the end of the boom cycle that has defined these capital cities in recent memory.

Larger Cities See Drops.

Sydney, Melbourne and, to a lesser extent, Canberra have all reported significant decreases in their median home value.  These decreases are largely powering the national drop in home values. With Brisbane, Adelaide and Perth all now slowing down, are Melbourne and Sydney dragging the other cities down with them, or just the first dominos to topple?

What Does This Mean? 

Home buyers may find opportunities in the downturn, as higher listings and weaker clearance rates may put the market in favour of home buying. Lower clearance rates also mean more choice for buyers and less competition. The biggest downside for home buyers right now is interest rate uncertainty and a still high cost of living.

[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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