Property

Home values post biggest monthly fall since December 2022

Australia's Home Value Index fell 0.7 per cent in July, the largest monthly decline since December 2022, according to Cotality data published on 14 August. Brisbane values dropped 0.6 per cent over the month and Adelaide fell 0.2 per cent.

A sold sticker on an agency signboard in an inner-suburban street

National home values fell 0.7 per cent in July, the biggest monthly drop since December 2022 | Digitally illustrated image

By Editor · 28 August 2026

By Caleb Reed · 2026-08-27

TLDR

Australia's national home values dropped 0.7 per cent in July, the sharpest monthly fall in more than three years, as listings surged 15.9 per cent above year-ago levels. A surprise 1.0 per cent jump in July inflation has raised the risk of another RBA rate rise in September.

KEY TAKEAWAYS

01National home values fell 0.7 per cent in July, the largest monthly drop since December 2022.

02Total listings rose 15.9 per cent above a year ago, giving buyers considerably more choice.

03Median vendor discounts widened to 3.8 per cent over the three months to July.

04Homes took a median 35 days to sell, reflecting softer buyer demand across the market.

05July's 1.0 per cent CPI rise has put a further RBA rate increase in September in play.

Values slide at fastest pace in three years

Australia's Home Value Index fell 0.7 per cent in July, the largest monthly decline since December 2022, according to Cotality data published on 14 August.^[1] Brisbane values dropped 0.6 per cent over the month and Adelaide fell 0.2 per cent.^[1]

Negotiating power shifted toward buyers over the same period. The national median vendor discount widened to 3.8 per cent over the three months to July, and homes took a median 35 days to sell.^[1]

Stock rising ahead of spring

New listings rose 5.1 per cent nationally to 72,806 dwellings in July, sitting 15.9 per cent above the same month a year ago, SQM Research data shows.^[2] The spring selling season, which typically drives another surge in supply, is still weeks away.

Louis Christopher, Managing Director of SQM Research, said the figures marked a turning point. "July's figures mark a significant shift in market conditions. National listing levels are now almost 23 per cent higher than they were a year ago, giving buyers considerably more choice than they have had for some time," Christopher said.^[2]

Inflation spike adds rate-rise risk

The Consumer Price Index rose 1.0 per cent in July, Australian Bureau of Statistics figures show, complicating the outlook for borrowers already under pressure.^[3] Westpac economist Justin Smirk said the result created upside risk. "On face value, the July CPI presents an upside risk to our estimates for the September quarter inflation release," Smirk said.^[4]

The RBA's next board meeting is scheduled for September 2026.

This article contains analysis and commentary on market conditions. It does not constitute financial, investment, or professional advice. Past performance is not indicative of future results. Always consult a qualified adviser before making financial decisions.

SOURCES & CITATIONS

FREQUENTLY ASKED QUESTIONS

How much did Australian home values fall in July 2026?

Cotality data shows national home values fell 0.7 per cent in July 2026, the largest monthly decline since December 2022.

Why are home values falling?

Listings are rising sharply, with new dwellings on the market 15.9 per cent above year-ago levels, giving buyers more choice and widening vendor discounts. Elevated borrowing costs are also weighing on demand.

Could the RBA raise rates again in September?

Westpac economist Justin Smirk said July's 1.0 per cent CPI rise presents an upside risk to September quarter inflation estimates, which the RBA will consider at its September board meeting.

Caleb Reed

Caleb Reed covers breaking news and sport. He works to the rhythm of a story as it unfolds, and he is happiest when the facts arrive faster than anyone can spin them.