What July’s Results Mean for Buyers and Sellers
July saw a noticeable shift in the Australian property market. Home values posted their largest monthly decline since December 2022. Sydney and Melbourne continue leading the downturn. Soft market conditions are now spreading to other capitals and regions that had stayed resilient.
Home Values Continue to Soften
According to the latest Home Value Index, national home values declined 0.7% in July, reflecting increasing pressure from affordability challenges, higher interest rates, cost of living pressures and cautious buyer sentiment.
Sydney recorded the largest monthly decline, with home values falling 1.4%, followed by Melbourne at 1.2%. Brisbane also moved into negative territory, declining 0.6%, while Adelaide slipped 0.2%. Perth was the only capital to record a slight increase, rising 0.1%, although recent data revisions show that even Perth’s market has begun to lose momentum.
One of the most notable trends is that higher value properties are experiencing the greatest correction, with upper quartile homes falling 3.2% over the three months to July, while lower priced homes have remained comparatively resilient.
Regional Markets Are Also Feeling the Change
Regional Australia, which has outperformed many capital cities over the past year, has also begun to cool.
The combined regional market declined 0.2% in July, marking its first monthly fall since January 2023. Regional New South Wales recorded the largest decline, while regional Victoria and regional Queensland also experienced modest decreases. Regional South Australia and regional Western Australia, however, continued to record positive growth.
Buyers and Sellers Are Adapting
Market conditions are influencing both buyers and sellers.
Buyer demand has softened due to affordability constraints, mortgage serviceability pressures, recent interest rate increases and broader economic uncertainty. At the same time, many sellers are becoming more cautious about listing their properties, choosing to wait for stronger market conditions before selling.
Despite fewer new listings coming to market, the total number of properties available across Australia’s capital cities is now 5.7% above the five-year average, creating more choice for buyers.
Auction clearance rates have also remained below 50% in many capital cities, reflecting the current gap between buyer expectations and seller pricing.
What Does This Mean?
A changing market doesn’t necessarily mean a bad market; it simply requires a different approach.
For buyers, increased stock levels can provide more choice and greater negotiating opportunities.
For sellers, realistic pricing, strategic marketing and experienced local advice are becoming increasingly important to achieve the best possible outcome.
While national trends provide valuable insight, every suburb and every property market behaves differently. Local knowledge, current buyer demand and accurate pricing remain the key ingredients to a successful sale.
Thinking of Buying or Selling?
Whether you’re considering selling now, planning for the future or simply curious about your property’s current value, understanding your local market is the first step.
At Home Scope, we combine local expertise with personalised service to help you make confident property decisions. We take the time to understand your goals, provide honest advice and tailor our approach to suit your individual needs, because no two properties, or clients, are the same.
If you’d like to know what your property could be worth in today’s market, contact us for a complimentary, no obligation market appraisal. We’d be delighted to help you understand your property’s position in the current market and discuss the best path forward.
Disclaimer
This article is provided for general information purposes only and does not constitute financial, legal or property investment advice. Property market conditions vary by location, property type and individual circumstances. Readers should obtain independent professional advice before making any property or investment decisions.
The market data, statistics and research referenced in this article are sourced from Cotality (formerly CoreLogic Australia), specifically the Home Value Index (HVI) – July 2026 Market Update, including commentary from Gerard Burg, Head of Research at Cotality. Home Scope acknowledges Cotality as the original source of this information. All intellectual property rights relating to the underlying research remain with Cotality. This article summarises publicly available market information and includes Home Scope’s general commentary only.