Sydney home values fell 1.6% in October: what it means for your clients

Sydney home prices are still falling. Cotality reports Sydney dwelling values fell 1.6% in October 2026 and 4.7% over the three months to October. The “seventh month” is a national count, not a Sydney one: Cotality’s national index fell for a seventh consecutive month. For clients in the Inner West and South-West, the index shows Sydney as a whole, not individual suburbs.

Current as at November 2026.

Are Sydney home prices still falling?

Yes. In its release of 2 November 2026, Cotality (formerly CoreLogic) said Sydney dwelling values were down 1.6% over October and 4.7% over the quarter. Brisbane (down 2.0%) and Perth (down 1.7%) have now overtaken Sydney as the fastest-falling capitals, so Sydney sits third on the monthly measure.

The previous release, for September, put Sydney’s fall at 1.4% for the month. It also showed Sydney values 7.0% lower than a year earlier and 8.6% below the February 2026 peak. Cotality did not repeat those two measures for Sydney in the October release, so we have not updated them here.

Is this really the seventh month?

Not for Sydney, as far as the published figures show. Cotality’s national Home Value Index fell 1.2% in October, its seventh consecutive monthly fall, and now sits 6.7% below its March 2026 peak. Combined capital city values are down 8.1% over those seven months, which Cotality describes as the fastest decline in 40 years. The release does not give a month-count for Sydney alone, so we have not claimed one.

What is happening with sales activity?

Cotality says the fall in sales has been sharpest in Sydney and Brisbane, with sales down 30% and 29% on a year earlier. Across the combined capitals, auction clearance rates are tracking below 50%. Cotality also puts the median time on market at 39 days, the highest since August 2020, and vendor discounting at 4.7%, the largest since May 2019. For sellers, that points to longer campaigns and more negotiation. For buyers, it means more time to compare options.

What does this mean for the Inner West and South-West?

The release reports Sydney as a whole. It has no figures for the Inner West, Canterbury-Bankstown or any other region, and it does not split houses from units or give a Sydney median. Values in a particular suburb can move differently from the city figure, so a suburb-level report or a local valuation is the better guide for a specific property.

One link to lending is worth knowing. The Reserve Bank raised the cash rate target by 25 basis points to 4.85% on 3 November 2026. Lower values can reduce the equity a client has in a property, and lenders look at the value of the security when they assess a loan. A client’s own numbers decide what applies to them.

What happens when you refer a client?

If a client is buying, selling or reviewing a loan after these figures, you can refer a client to Loan Lounge. A broker will contact them and work through their situation. Lenders pay us commission, so for most residential lending there’s no direct fee to your client. We can speak with clients in English, Vietnamese, Cantonese and Mandarin from our lounges in Burwood and Cabramatta. Next step: book a loan review for your client.

Frequently asked questions

Did Sydney home values fall in October 2026?

Yes. Cotality reported a 1.6% fall in Sydney dwelling values for October and a 4.7% fall over the quarter.

Has Sydney fallen for seven months in a row?

The release confirms seven consecutive monthly falls for the national index. It does not state a streak for Sydney.

Does the index show prices in the Inner West?

No. The release covers Sydney overall, and it does not include Inner West or South-West regional figures.

This is general information only. It does not take into account your or your client’s objectives, financial situation or needs. It is not financial, tax, legal or investment advice, and it is not a prediction of property values or interest rates. Loan Lounge, ACL 515608.

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