Australia’s Housing Market Enters a Cooling Phase

Australia’s housing market shifted in June 2026, with the national Home Value Index falling 0.4% month-on-month. This was the largest monthly decline recorded since December 2022.

Sydney experienced the sharpest correction, with dwelling values falling 1.2%, followed by Melbourne at 1.0% and Canberra at 0.6%. Adelaide remained unchanged, while Brisbane and Perth continued to grow by 0.3% and 0.7%respectively.

Over the June quarter, national dwelling values declined 0.7%, while combined capital city values fell 1.3%. The slowdown was mainly driven by weaker buyer demand and growing affordability pressures. 

Market Conditions Become More Buyer-Friendly

Higher interest rates, cost-of-living pressures, cautious buyer sentiment and recent property tax changes have contributed to softer market conditions.

Auction clearance rates across the combined capital cities have remained below 50% since late May. Capital city sales volumes were also estimated to be 16.2% lower year-on-year.

Meanwhile, advertised listings increased by almost 11% compared with the previous year. This has given buyers more options, reduced urgency and placed greater pressure on sellers to set realistic asking prices.

Despite the national slowdown, market performance remains uneven. Perth recorded the strongest annual growth among the major capital cities at 23.9%, while Brisbane increased 17.4%, highlighting continued demand in selected markets.

Outlook

Australia’s housing market is likely to remain more balanced and selective in the coming months.

Buyers may benefit from wider choice and improved negotiating power, while sellers will need to align pricing expectations with changing demand. Markets with stronger population growth, affordability and supply fundamentals, particularly Perth, may remain more resilient than Sydney and Melbourne.