Home prices continue to fall as buyer demand declines.

July 25, 2026

This week’s housing market data from Cotality shows buyer demand is slowing, pushing prices down in major capital cities.

In the week ending July 24, house values fell in all major capital markets, including Perth, with the 5-city composite index falling 0.2%.

Home prices continue to fall as buyer demand declines.

Over the first 24 days of July, values fell by 0.6% across the 5-cities, led by Sydney and Melbourne, with only Perth recording an increase (0.25%).

Year to date, house values across the 5-city aggregate have fallen 2.0% from their recent peak, with Sydney and Melbourne recording declines of around 5%. Other major capital markets – Brisbane, Adelaide and Perth – are in the early stages of their respective price reforms.

The elimination of auction clearance rates has affected the decline in home values. Late last week, the final national auction clearance rate fell to 45.3 percent, representing the eighth consecutive week of a clearance rate below 50 percent. Melbourne was the only capital city market to record a final auction clearance rate above 50% (ie 50.6%).

Source: Cotality

The following charts plot monthly average final auction clearance rates against housing price growth.

At the combined capital level, the final approval rate for auctions in the first three weeks of July was only 47%, marginally higher than the 46% recorded in June.

Sydney’s final auction clearance rate averaged 47% in the first three weeks of July, slightly higher than the 45% recorded in June.

Sydney Auction Clearance Rates vs Prices

Melbourne’s final auction clearance rate averaged 50% in the first three weeks of July, up from 47% recorded in June.

After all, Brisbane’s final auction approval rate fell to just 31 per cent during the first three weeks of July, the city’s lowest reading since April 2020 during the height of the COVID-19 pandemic.

Despite a slight recovery in auction clearances in the common capital cities, the weak overall reading points to further significant price declines.

Meanwhile, amid a slowdown in buyer demand, for-sale listings are on the rise, rising 18.4 percent in the combined capital cities this week compared to the same time last year.

Source: Cotality

As you can see, listings have grown particularly strongly in Brisbane (27.4%), Adelaide (21.6%), and Perth (22.3%), although these are significantly higher in all mainland capital city markets.

With demand decreasing and listings increasing, there’s only one direction for home prices: down.