Aleisha Dawson, Property Journalist
First published 13 Nov 2026, 3:00am
Realestate.com.au senior economist Angus Moore says the downturn remains consistent with affordability and interest rates being the key driver.
Australian home prices have fallen for seven consecutive months and sit 4.3 per cent below their March peak, with soft conditions expected to persist as interest rates remain elevated.
The realestate.com.au Market Snapshot, released this week, confirmed borrowing capacity and buyer demand had pulled back under the weight of five interest rate rises, as well as changes in the federal budget to housing taxes.
Buyer demand had pulled back under the weight of five interest rate rises, as well as changes in the federal budget to housing taxes.
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“That has driven a broadbased slowdown in home prices and market conditions,” said realestate.com.au senior economist Angus Moore.
“To date, the downturn remains consistent with affordability and interest rates being a
key driver, with prices in more-expensive segments declining further than in more-affordable segments.
“Market conditions remain soft, with low clearance rates and longer sales times
The report revealed the showed the downturn has “clearly broadened out” to include Brisbane, Perth and Adelaide, after hitting Sydney and Melbourne first.
“Adelaide saw some of the largest monthly falls in home prices in October, and the peak-to-trough downturn in Perth and Brisbane has nearly caught up to that of Melbourne.
Prices in regional areas have continued to hold up better than the capitals, Prices across the regional areas were down 0.1 per cent in October and are off just 1.4 per cent from peak.”
Auction clearance rates remain low, as they have since autumn, after falling through the start of 2026, and have shown little sign of improving through spring.
The median days on market nationally has increased by two weeks since its recent low in April.
An aerial view of Scarborough Beach, Perth, Western Australia.
Nationally, the total number of properties listed for sale in October jumped nine per cent year-on-year, representing a modest improvement in choice for buyers.
“That, combined with a pullback in buyer demand, is making market conditions a little less competitive,” Mr Moore said.
“As has been true in recent months, the increase in total listings has been particularly large in Brisbane, Adelaide and Perth.
“In those three cities, stock available for sale has jumped circa 40 per cent compared to a year ago, driven by both longer sales times and a higher flow of new listings than a year ago.”
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