31/08/2026
Australia’s housing downturn marks its fifth consecutive month of decline, with Cotality’s Home Value Index dropping 0.9% in August as market weakness spreads nationwide.
What's driving the broader drops? Tim Lawless explains ⬇️
📉 The downturn is now evident across almost every broad region of the country, Sydney (-1.4%) continued to lead the declines, while Melbourne, Canberra and Brisbane each recorded monthly falls of at least 1%.
🏠 Sales activity is tracking well below both last year's levels and the five-year average, while homes are taking longer to sell and advertised stock levels continue to build.
🔑 Despite softer housing conditions, rental markets remain tight. The national vacancy rate has edged up to 1.9%, but remains well below pre-COVID averages, with rents continuing to rise across every broad region of the country.
👥 Looking ahead, the risk profile has shifted further to the downside. Sticky inflation, the possibility of another interest rate rise, weaker consumer sentiment and a pullback in investment activity are all expected to keep buyer demand subdued through spring.
To read more of the latest , head to Cotality Insights
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