National home values fell 1.2 per cent in October, according to Cotality's Home Value Index published on 2 November 2026. It is the seventh consecutive monthly fall. The national index is 6.7 per cent below its March peak, which Cotality equates to about $63,400 on the median Australian dwelling.
City by city in October
- Brisbane: down 2.0 per cent in October, the largest monthly fall among the capitals in this release.
- Perth: down 1.7 per cent in October.
- Sydney: down 1.6 per cent in October and 4.7 per cent over the rolling quarter.
- Combined capital cities: down 8.1 per cent over seven months. Cotality says that speed is faster than any previous downturn over the past 40 years, though the 2017 to 2019 episode still holds the largest peak-to-trough fall on its record at 8.2 per cent.
Cotality research director Tim Lawless said Brisbane and Perth have overtaken Sydney for the fastest pace of monthly decline, with virtually every suburb across Brisbane, Perth and Adelaide recording a drop over the past three months. He noted that despite extreme growth in those cities earlier in the cycle, most homeowners still sit on an equity buffer, while Melbourne and Sydney owners are in a weaker equity position than five years ago in some cases.
Sales slower, listings higher, buyers cautious
Modelled sales over the past three months are 23 per cent lower than a year ago and 18 per cent below the previous five-year average, with Sydney and Brisbane down about 30 and 29 per cent respectively on a year ago. Auction clearance rates across the combined capitals are consistently below 50 per cent. Median time on market is 39 days, the highest since August 2020, and vendor discounting is 4.7 per cent, the largest since May 2019.
Listings across the capitals are at the highest level for this time of year since 2019 even though fresh listings are running about 18 per cent below average. Lawless said buyers have more stock and more leverage, but low confidence and serviceability barriers are keeping many out of the market despite the softer prices.
The pace of the capital-city fall over seven months is the fastest in 40 years. That is not the same as the largest peak-to-trough drop on record.
What the November rate hike adds
The Reserve Bank's 3 November cash rate increase to 4.85 per cent tightens borrowing power on top of falling valuations. If you are buying, refresh pre-approval at the new assessment rate before you make an offer. If you are refinancing, expect a lower valuation than you would have received in March. If you are selling and buying in a falling market, consider selling first or lining up bridging finance.
What to do with this
- Recheck borrowing power at 4.85 per cent policy settings and your lender's variable rate after the 13 November pass-through dates.
- Negotiate on time on market and discounting. Forty-nine days to sell and 4.7 per cent vendor discounting are both softer conditions than a year ago.
- Do not assume a national "crash". Cotality describes a broad correction with headwinds from rates, confidence and affordability, not a uniform collapse in every suburb.
- If you need to sell at a loss relative to purchase price, understand lenders mortgage insurance and negative equity risk before you exchange.
Disclosure: Licensed brokers who meet our criteria pay Your Finance Guide a partnership fee to receive enquiries from this site. The fee is paid by the broker, not by you, and is not added to your loan. Brokers are usually also paid a commission by the lender when a loan settles. Figures are from Cotality's October 2026 index release published 2 November 2026. This is general information, not personal advice.