Australia's home value index edged 0.3% higher in April, registering its slowest pace of growth since January 2025 amid declines in Sydney and Melbourne, according to figures from Cotality released Friday.
All capital cities in Australia recorded a deceleration in growth during April, with home values declining 0.6% in Sydney and Melbourne. Sydney values are now 1% below their November 2025 peak, while Melbourne values are 2.3% below a high seen in March 2022.
Brisbane, Adelaide, and Darwin also saw a slowdown in growth, although values still rose by more than 1% month over month in each city.
Softer housing conditions came alongside a slowdown in buyer demand, and an imbalance between demand and supply is also evident in auction clearance rates, which have stayed below 55% since the last week of March.
"The housing market was losing momentum from late last year as affordability and serviceability constraints weighed on demand," said Cotality Research Director Tim Lawless. "Now we have the additional downside pressure of higher interest rates, sentiment has fallen off a cliff, and rising inflation is set to drive the cost of debt even higher."