@realty agents transacted $329,519,050 in property sales across Australia and New Zealand during July, despite continued pressure across the Australian housing market.
National home prices declined by 0.3% during the month, marking the fourth consecutive monthly fall. Prices are now 1.8% below the market peak recorded in March 2026, although they remain 3.9% higher than a year ago.
The median price of an Australian home fell to $894,000, with house prices declining 0.4% to $989,000 and unit prices falling 0.2% to $730,000.
Capital Cities Lead the Decline
Capital cities were the primary driver of the national downturn, with combined prices falling 0.4% in July and sitting 2.5% below their March peak.
Sydney recorded the largest monthly decline at 0.6%, followed by Adelaide, Hobart and Canberra, which each fell 0.5%. Melbourne prices decreased by 0.4%.
Darwin was the only capital city to record growth, rising 0.1% and reaching a new market peak. Perth and Darwin remain the strongest-performing capital cities over the past 12 months, with both recording annual price growth of 14.9%.
Higher interest rates continue to limit borrowing capacity, while ongoing cost-of-living pressures and inflation are placing further strain on buyers’ budgets. Some purchasers may also be delaying decisions while waiting for prices and interest rates to stabilise.
Regional Markets Continue to Outperform
Regional property markets remained more resilient, with combined regional prices holding steady during July and sitting just 0.3% below their peak.
Regional markets in South Australia, Tasmania and the Northern Territory remained at record-high price levels. Regional South Australia was the strongest performer for the month, with prices increasing by 0.6%.
Overall, regional home prices are now 8% higher than they were 12 months ago.
Units have also outperformed houses over the past year, increasing by 5.1% nationally compared with 3.6% growth for houses. Affordability is likely contributing to this shift, as more buyers consider units after being priced out of houses in established inner and middle-ring suburbs.
Property Market Outlook
Australian home prices may experience further declines throughout 2026, with the extent of the slowdown likely to depend on future interest-rate decisions, property listing volumes and changes in investor demand.
However, the long-term fundamentals supporting the Australian property market remain strong. Housing supply continues to fall behind population growth across many capital cities and regional markets, which is expected to limit the extent of prolonged price declines.