Home Values Fall Seven Straight Months
Capital city home prices are declining at the fastest pace of any housing downturn in four decades, as borrowing capacity shrinks.
Updated on Nov. 2, 2026 in Residential
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Australian home values have fallen for seven consecutive months, according to new Cotality housing data. Borrowing capacity is shrinking even as rents continue to rise.
Why it matters
The downturn is hitting Australian households at a time when rates are expected to rise, further tightening borrowing power. Markets are betting the Reserve Bank of Australia will raise rates again at its decision on 3 November 2026.
The figures come from Cotality housing data showing seven consecutive monthly declines in home values, with capital city prices falling at the fastest rate of any housing downturn in four decades. The extraction does not quantify the total fall in value or identify which capital cities are weakest.
The players
Reserve Bank of Australia
The Reserve Bank of Australia is the nation's central bank, responsible for setting the cash rate that influences mortgage costs across the country.
Cotality
Cotality is a property data and analytics company that publishes housing market data tracking home values across Australia.
The details
Cotality released its housing data showing that home values have fallen for seven straight months. Over the same period, borrowing capacity has shrunk while rents have continued to rise across Australia.
Timeline
Seven straight months of falling home values, ending with the November 2026 data.
The Reserve Bank of Australia announces its rate decision on 3 November 2026.
Market Context
Cotality's monthly index has now recorded seven consecutive declines, a run that places the current correction among the sharpest housing downturns the country has seen in four decades. The pattern shows a sustained fall in capital city values rather than isolated month-to-month volatility.
Shrinking borrowing capacity means many buyers may qualify for smaller loans than they expected, even as rents keep climbing. Renters and prospective buyers face a squeeze on their household budgets from both directions.
The takeaway
Households weighing a purchase should stress-test their budget against higher rates and reduced borrowing power before committing. Renters should expect rising costs to persist even as property values soften.
What happens next
The Reserve Bank of Australia announces its rate decision on 3 November 2026, which markets expect to be a rate hike.
Further reading
For more on the market, see Residential property trends across Australia.
Source note: This article includes information reported by Australian Broadcasting Corporation.
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