Property · 3 August 2026

National house values fell 0.7 per cent in July, sharpest monthly drop since 2022

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Keep an eye on it

Directly relevant to owners, buyers, sellers and investors. A falling market changes the calculus on when to buy, whether to sell, and what a home equity loan is worth.

In a nutshell: The Cotality Home Value Index released 3 August 2026 showed national home values fell 0.7 per cent in July — the largest monthly drop since December 2022. Sydney fell 1.4 per cent and Melbourne 1.2 per cent. Brisbane and Adelaide also declined. Regional markets posted their first monthly fall in over three years. KPMG forecasts national house prices will fall 1.1 per cent for full-year 2026 before rebounding 3.4 per cent in 2027. Rents continue to rise despite price falls.

Spin Unspin

What they’re saying

The pull-back reflects the cumulative effect of 2026 rate hikes and elevated listings, not a single shock event.

KPMG identifies Darwin as the outlier performing strongly; Sydney and Melbourne are the main drags. Units are holding up better than houses.

Cotality index and KPMG August 2026 report are independent and broadly consistent. Which Real Estate Agent sourced from Cotality data released 3 August. KPMG report published mid-August 2026.

Australian Property Market - Prices, Trends, Forecast [August 2026]

Rising rates and growing uncertainty continues to cool housing market

Do I care?

Declining prices improve entry conditions, but with rates still at 4.35%, serviceability tests are still tight. Get pre-approval clarity before acting.

Listing volumes are elevated; conditions favour buyers. Pricing strategy matters more than usual in this environment.

A falling market rewards patience for buyers and punishes overextended sellers — neither position is permanent.

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