Updated
Updated · Sydney Morning Herald · Nov 1
Australia Home Values Drop 1.2% in October as 4.85% RBA Rate Looms
Updated
Updated · Sydney Morning Herald · Nov 1

Australia Home Values Drop 1.2% in October as 4.85% RBA Rate Looms

3 articles · Updated · Sydney Morning Herald · Nov 1

Summary

  • National property values fell 1.2% in October, the seventh straight monthly decline, leaving prices down 6.7% since March and shaving $63,400 off the median home value.
  • Brisbane and Perth joined the downturn more sharply, with house values down 2.0% and 1.7% in October; Brisbane is now the weakest market over three months, down 6.2%.
  • Sydney’s median house price fell 1.9% in October to leave it down 11.1% this year, while Melbourne house values slipped 1.0% and are down 9.0% in 2026.
  • Cotality said higher interest rates, cost-of-living pressure and federal budget measures are driving the slide, with virtually every suburb in Brisbane, Perth and Adelaide falling over the past three months.
  • Markets expect the RBA to deliver a fifth rate hike this year on Tuesday, taking the cash rate to 4.85%; AMP estimates a quarter-point move would add about A$110 a month to an average mortgage.

Insights

Are we witnessing a healthy market correction or the beginning of a devastating crash in Australian real estate?
As interest rates squeeze buyers and force renters to share homes, how will this reshape Australian living?
If most homeowners remain in positive equity despite recent drops, who really bears the brunt of this property slump?