May Home Values: Growth Eases Nationwide

With interest rates on the rise, the property market is beginning to reflect a slowdown in buyer demand. The Larger capital cities of Sydney and Melbourne reported a decrease in median home values of 0.6% each. Depiste this, Perth continues to grow rapidly, seeing a 2.1% increase in median home values month to month.

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 April 2026

State Market Report.

These median values are as of 1st of May 2026

Sydney

The median home value decreased by 0.6% to $1,292,157.

Melbourne

The median home value decreased by 0.6% to $822,969

Brisbane

The median home value has increased 1.2% to $1,116,180, keeping steady growth pace overall.

Adelaide

The median home value has increased 1.1%. The median home value is now $944,673.

Perth

The median home value has increased 2.1%,seemingly unslowed by shifting market conditions, at least for now.  Perth’s median home value is $1,039,949

Hobart

The median home value grew slightly by 0.2% , and is now $744,296

Darwin

The median home value has increased 1.3% and is now $619,351.

Canberra

The median home value has stayed steady between March & April. It is currently $898,242

Melbourne and Sydney See Significant Drops. 

Melbourne and Sydney continue to see the only consistent drops in value for capital cities. Sydney, Melbourne and Canberra are also seeing rental growth now outpace value growth.

Mid-Size Cities are Weathering the Storm. 

Adelaide, and Brisbane are continuing to grow despite headwinds, however it will remain to see if they can contend with housing affordability constraints, population growth easing and uncertainty overseas. Perth is still recording seismic growth, with an increase of 2.1% month-to-month. Despite this strong growth, there is an easing from previous reports, showing no market is immune to the factors driving the market slowdown.

What Does This Mean? 

With rates rising and demand slowing, less people are entering the property market. We may continue to see growth ease over the coming months, with some markets having the capacity to decrease in value.

That being said, home values tend to trend upwards over time, even if month-to month value decreases at points. Every market has managed to grow at least 2% in median home values year-to-year. With overall trajectory of home values continuing to be upward, ebbs and flows in home values can potentially provide opportunity to home buyers and investors, however it’s important to ensure it’s the right time and circumstances for you.

[1]Cotality.com. (2026). Home value growth eases nationwide. [online] Available at: https://www.cotality.com/au/insights/articles/home-value-growth-eases-nationwide-led-by-declines-in-sydney-and-melbourne [Accessed 11 May 2026].

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