02/06/2026
Australia's housing market hits pause
Australia's housing market essentially ground to a halt in May, with Cotality's national Home Value Index recording 0.0% growth for the month.
But a flat national number masks a growing divide. Sydney fell 0.9% and Melbourne dropped 0.8%, both now sitting meaningfully below their November peaks. Perth and Darwin, meanwhile, rose 1.5%, and Brisbane gained 0.9%.
Cotality research director Tim Lawless said the direction is becoming more consistent across the country, even if the pace still varies. "Most markets are losing momentum as demand-side headwinds intensify."
Higher interest rates, stretched affordability and the federal budget's changes to negative gearing and capital gains tax are all bearing down on buyer demand. National home sales over the past three months were 2.2% lower than a year ago.
“The largest drop in estimated sales can be seen in Sydney and Melbourne, down 17.0% and 14.2% on levels a year ago,” said Mr Lawless. “These are also the cities where advertised supply has risen to above average levels, providing more choice and better leverage for buyers.”