Australian Home Values Fell 0.7% in July 2026

Short summary

Australia's national Home Value Index fell 0.7% in July 2026, according to Cotality data published on 3 August. Cotality described it as the largest monthly fall since December 2022.

Sydney and Melbourne recorded the largest capital-city falls in the release, but the downturn also reached Brisbane and Adelaide. Perth recorded a small monthly rise after its June result was revised down.

These are index movements, not valuations. They do not show how a particular home, suburb or price point changed. Use the Property Value Change and LVR Calculator to translate a percentage into a clearly labelled scenario, then use current property-specific evidence before relying on a value.

What changed in July

Cotality reported these monthly Home Value Index movements:

The combined regional index fell for the first time since January 2023. Regional NSW recorded the weakest regional result at -0.4%, while regional South Australia and regional Western Australia still rose by 1.4% and 0.9% respectively.

The release also shows why a national number needs context. Cotality said upper-quartile home values fell 3.2% over the three months to July, while the lower-value tier rose 0.3%. A single headline can hide a wide gap between property segments.

Later data changed the picture

The Reserve Bank said in a 28 July speech that established-price falls had been concentrated in Sydney and Melbourne, while several other markets were still growing more slowly.

Cotality's later July release showed the downturn had widened to Brisbane and Adelaide. This does not make the RBA speech inaccurate for its earlier data window. It shows how quickly market conditions and revised indexes can change.

Read the RBA housing and negative-equity update for the central bank's household-risk context. The two releases answer different questions.

A 0.7% value-change example

Assume a property has a current planning value of $1,000,000 and a secured loan balance of $700,000.

Applying a one-off 0.7% fall gives:

• Dollar value change: -$7,000.
• Scenario property value: $993,000.
• Starting equity: $300,000.
• Scenario equity: $293,000.
• Starting LVR: 70.00%.
• Scenario LVR: about 70.49%.

This is arithmetic, not a claim that the property fell by the national rate. A house in one suburb can move differently from an apartment in another, and a lender may use its own valuation.

Who may be affected

The release may be useful context for:

• owners checking equity before refinancing;
• sellers comparing an expected sale price with the lender payout and selling costs;
• buyers testing how a valuation shortfall could change their deposit or LVR;
• researchers following the difference between capital cities, regions and price tiers; and
• mortgage holders trying to understand why a market index does not automatically mean negative equity.

A lower market index does not change scheduled mortgage repayments by itself. Repayments depend on the loan balance, rate, repayment type and remaining term. Use the Mortgage Repayment Calculator for that separate question.

What the index can and cannot tell you

Cotality's Home Value Index uses a hedonic method. It adjusts for property characteristics so that changes in the mix of homes sold do not dominate the result.

Cotality also says its hedonic indexes are revised for 12 months as later information arrives. The July release noted that May and June falls had been revised lower as the market changed quickly.

The index can help describe broad market direction. It cannot provide:

• a valuation of one property;
• the likely sale price after marketing and negotiation;
• a lender valuation;
• a forecast of the next monthly result;
• a mortgage approval or refinance outcome; or
• a recommendation to buy, sell or hold.

For a property-specific check, start with recent comparable sales and a current valuation where needed. The Property Value Guide explains the difference between market data, automated estimates and formal valuations.

What remains uncertain

Interest rates, affordability, listings, buyer sentiment and policy settings can all affect market activity, but the July data does not prove that one factor caused each city movement.

Cotality reported combined-capital listings at 5.7% above the five-year average, while noting that some potential vendors were delaying listings. That points to changing buyer and seller behaviour, but it does not predict the size or duration of future price moves.

The next monthly index may also revise the July history. Any calculator scenario based on this article should therefore remain an assumption, not a forecast.

Related calculators and guides

• Property Value Change and LVR Calculator
• Home Equity and LVR Calculator
• Property Selling Costs Calculator
• Mortgage Repayment Calculator
• How to Calculate LVR in Australia
• Property Value Guide

Sources

• Cotality: Australia's housing market downturn widens, published 3 August 2026 and checked 10 August 2026.
• Cotality: Home Value Index methodology, checked 10 August 2026.
• Reserve Bank of Australia: Monetary Policy in an Era of Shocks, delivered 28 July 2026 and checked 10 August 2026.

General information disclaimer

This article provides general information and indicative examples only. It is not a valuation, property forecast, financial advice, credit advice, loan approval or recommendation. Market indexes do not determine the value of an individual property. Check current property-specific evidence and speak with a licensed professional where appropriate.

Last updated: 10 August 2026.