Australian Home Values Fall for Seventh Month Before RBA Decision

Australian home values fell for a seventh consecutive month in October, extending a broad housing downturn as the Reserve Bank of Australia prepares to review borrowing costs this week.

In October, the national index dropped 1.2% month over month and sat 6.7% below its March 2026 high, a decline equivalent to an estimated A$63,400 in median dwelling value. The combined capital-city index fell 8.1% over seven months. October values were down 2.0% in Brisbane, 1.7% in Perth and 1.6% in Sydney. Sydney values fell 4.7% over the quarter.

Home sales in the three months through October were estimated to be 23% below the same period a year earlier and 18% below the previous five-year average. Median time on market reached 39 days, its longest since August 2020, while vendor discounting rose to 4.7%, the highest since May 2019.

“Affordability and serviceability constraints were the earliest factors weighing on housing demand,” said Cotality research director Tim Lawless.

The RBA raised its cash rate target by 25 basis points at its Sept. 29 meeting, setting it at 4.60% effective Sept. 30. The target influences lending and deposit rates across Australia. The RBA’s Sept. 29 rate increase came as housing prices had fallen in most capital cities and new housing loans had declined noticeably. Inflation remained too high, the board said.

Annual consumer price inflation was 4.3% in September, up from 4.0% in August. Trimmed-mean inflation was 3.6%, above the RBA’s 2% to 3% target range, and fuel prices rose 9.4% month over month in September.

The RBA’s next decision is scheduled for 10:30 p.m. ET Monday, Nov. 2 (03:30 UTC Tuesday, Nov. 3).