Australian housing market downturn

Australia’s home price retreat gathers pace in July, Cotality data shows

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Australian home loan applications fell by 15% between the first three months of 2026 and the quarter ending in June.

NAB reported that Australian home loan applications decreased by 15% between the first three months of 2026 and the quarter ending in June.

Other institutions, including Westpac, Equifax, and Loan Market, have also independently reported a fall in mortgage demand across Australia.

RBA Governor Michele Bullock noted a slump in house prices and demand since May.

RBA Governor Michele Bullock noted that housing prices and demand in Australia have been slumping since May. While characterizing interest rates as only being “a bit” restrictive, the Governor attributed the downturn to a drop in buyer demand.

The market slowdown has coincided with the Reserve Bank of Australia hiking interest rates and the outbreak of the US war on Iran. Additionally, housing demand has fallen further following the May federal budget, which reduced tax concessions for property investors.

Australian housing market began slowing down in February.

The Australian housing market began to slow down in February 2026, a period coinciding with interest rate hikes by the Reserve Bank of Australia and the outbreak of the US war on Iran. Since February, median prices in major cities have seen declines, with Sydney, Melbourne, and Canberra falling by $69,000, $39,000, and $22,000 respectively.

Housing demand has faced additional pressure following the May federal budget, which reduced tax concessions for property investors. This decline was further reflected in a 15% drop in Australian home loan applications between the first three months of 2026 and the three months ending in June, as reported by NAB. Other institutions, including Westpac, Equifax, and Loan Market, have also independently reported falling mortgage demand.

Brisbane dwelling prices increased for 40 consecutive months starting from February 2023.

Starting in February 2023, Brisbane saw its dwelling prices rise for 40 consecutive months. This period of sustained growth continued until prices began to fall in June.

Regional Australia's home values fell for the first time since January 2023 in June.

Regional home values in Australia saw an overall decline in June, marking the first time such a drop occurred since January 2023.