Key takeaways
Capital city home prices have fallen sharply over July with the recent market downturn amplified by the usual subdued mid-winter market conditions.
The national capital city median house price fell by 1.5% over the July quarter to $1,253,674 compared to the June quarter, according to the latest data from My Housing Market.
National unit prices have also continued to decline over the July quarter compared to the June quarter, down by 0.8% to $715,554 – but have increased by 4.3% compared to the July quarter 2025 result.
Most capitals reported lower unit prices over the month with Adelaide and Hobart the exceptions with increases of 1.3% and 0.4% respectively.
Capital city home prices have fallen sharply over July with the recent market downturn amplified by the usual subdued mid-winter market conditions.
The national capital city median house price fell by 1.5% over the July quarter to $1,253,674 compared to the June quarter, according to the latest data from My Housing Market.
The June result was the third consecutive decline in national house prices and now the sharpest fall since August 2022.
Annual national house prices however still remain higher by 3.8% but annual house price growth has fallen sharply this year since the March peak of 10.9%
Most capitals again reported lower house price over the month with Hobart and Canberra the only capitals to report growth – up by 1.4% and 0.4% respectively.
Brisbane house prices fell by 0.3%, Perth down 0.9%, Melbourne and Darwin fell 1.3%, Adelaide down 1.4% with Sydney prices significantly lower over the month by 2.7%.
Most capitals however continue to report still-strong annual house price growth with Perth, Darwin, Brisbane, Hobart and Adelaide the highest, up by 18.9%, 15.2%, 14.0%, 10.3% and 9.0% respectively.
Quarterly Median House Prices July 2026
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $1,678,842 | -2.7% | -5.4% | -1.6% | 6.0% |
| Melbourne | $1,055,740 | -1.3% | -5.9% | -2.6% | 1.6% |
| Brisbane | $1,207,950 | -0.3% | 3.6% | 14.0% | 25.3% |
| Adelaide | $1,108,771 | -1.4% | 0.9% | 9.0% | 18.6% |
| Perth | $1,201,671 | -0.9% | 7.4% | 18.9% | 32.6% |
| Hobart | $779,054 | 1.4% | 3.9% | 10.3% | 14.7% |
| Darwin | $786,638 | -1.3% | 3.5% | 15.2% | 27.3% |
| Canberra | $985,354 | 0.4% | -2.2% | 0.9% | 2.2% |
| National | $1,253,674 | -1.5% | -1.9% | 3.8% | 11.5% |
National unit prices were also lower
National unit prices have also continued to decline over the July quarter compared to the June quarter, down by 0.8% to $715,554 – but have increased by 4.3% compared to the July quarter 2025 result.
Although still falling, the unit market continues to outperform the house price market.
Most capitals reported lower unit prices over the month with Adelaide and Hobart the exceptions with increases of 1.3% and 0.4% respectively.
Darwin, Sydney and Melbourne fell by 0.4%, 0.4% and 0.8% with Brisbane down 1.8%, Canberra falling 2.3% and Perth lower by
2.6%.
Quarterly Median Unit Prices July 2026
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $801,802 | -0.4% | -0.9% | 0.5% | 4.2% |
| Melbourne | $581,714 | -0.8% | -2.7% | 1.6% | 3.6% |
| Brisbane | $758,340 | -1.8% | 6.7% | 21.5% | 41.0% |
| Adelaide | $638,505 | 1.3% | 1.4% | 11.5% | 24.6% |
| Perth | $670,626 | -2.6% | 8.1% | 20.2% | 41.3% |
| Hobart | $591,371 | 0.4% | 10.3% | 13.1% | 15.4% |
| Darwin | $460,333 | -0.4% | 7.2% | 22.3% | 28.0% |
| Canberra | $500,328 | -2.3% | -1.4% | -2.6% | 1.7% |
| National | $715,554 | -0.8% | 0.2% | 4.3% | 9.9% |
Similar to houses, Darwin, Brisbane, Perth, Hobart and Adelaide continue to record the highest annual unit price growth to July 2026, up by 22.3%, 21.5%, 20.2%, 13.1% and 11.5% respectively.
Comment
Capital city housing markets have continued to generally decline sharply over July, exacerbated by the typically subdued mid-winter market period.
Reduced buyer and seller activity over recent months predictably reflects the impact on affordability and confidence of consecutive official interest rate increases in February, March and May.
Increased uncertainty over the economic outlook and significant changes to federal property taxes have also impacted market activity.
The outlook for home prices through 2026 is now increasingly problematic particularly with stubbornly high inflation increasing the prospect of a near-term interest rate rise although the recent spike in oil prices is yet again easing.
The economy however remains strong with a consistently low jobless rate over June and continued robust jobs growth and high participation rates.
Housing demand continues to outpace low and diminishing housing supply and although high post-COVID migration levels have clearly eased recently, numbers remain solid and will add to chronic housing undersupply supporting high rents and low vacancy rates generally in capital city rental markets.
Following a period of easing rental growth, the latest data continues to report extraordinarily low home rental vacancy rates with now clearly generally rising rents.
Recently announced federal government changes to property taxes designed to reduce investor activity will likely place further upward pressure on rents.
Capital city housing markets generally recorded higher house and unit prices over 2023, 2024 and surged over 2025 fuelled by rising buyer and seller confidence through sharp cuts to interest rates.
2026 is now clearly reporting lower home price outcomes compared to the previous three years with uncertainty remaining over the near-term future for interest rates.
The prospect of higher interest rates will continue to generally dampen buyer and seller confidence particularly over the typically distracted and quieter winter period.
Although buyer and seller uncertainty may dampen the usual late winter, pre-spring revival in housing market activity; underlying drivers generally nonetheless remain positive notwithstanding growing uncertainty over the near-term trajectory of interest rates.
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