Six Months of Softer Prices: What It Means for Sydney Buyers and Sellers
Data note: These figures come from Cotality’s Home Value Index for September 2026, released on 1 October. This is the latest available update. October results are expected in early November
Australian home values have now fallen for six months in a row. Cotality’s latest data shows national values slipped 1.1% in September, leaving them 5.2% under the March 2026 peak.
The pullback is widespread. Darwin was the only capital to record growth last month, and close to every capital city suburb has lost value over the past quarter.
Sydney is leading the correction
Sydney values have fallen 8.6% since February, a slightly faster drop than at the same point in the 2022–23 downturn. Over 12 months, values are down 7%.
Brisbane, previously one of the country’s strongest markets, recorded the biggest monthly fall at 1.5%. Melbourne’s decline is now easing compared with the mid-sized capitals.
Regional areas continue to hold up better, with values up 5.6% over the year while the combined capitals are down 1.8%.
Why the market has slowed
Several pressures are working together: higher interest rates, stretched affordability, rising living costs and weaker confidence. Together, they’ve reduced how much people can borrow and how willing they are to commit.
More choice, fewer buyers
Activity has dropped. Sales over the past three months are about 19% lower than a year ago, and Sydney sales are down more than 26%.
Fewer homes are being listed, but they’re also selling much more slowly. Capital city properties now take a median of 39 days to sell, up from 23 days a year ago. This means stock is building up, and buyers have more to choose from.
The catch is that many buyers who would benefit from that choice don’t currently have the borrowing capacity or confidence to act.
What this means for your clients
- Buyers: Less competition and more time to negotiate, as long as their finance is sorted before they start looking.
- Upgraders: Selling may take longer, so the order of selling and buying matters more than usual. Bridging or simultaneous settlement strategies need careful planning.
- Sellers: Realistic pricing and a clear timeline become more important when homes are taking longer to sell.
A softer market isn’t necessarily a bad time to move. It just rewards people who have a clear plan before they act.
If you have a client wondering whether now is the right time, we’re happy to walk them through their options. Click here to book your FREE consultation.