Australia's home value index declined 0.7% in July, representing the largest drop since December 2022, as the country's housing market downturn expanded to hit more regions, Cotality said in a Monday report.
The major markets of Sydney and Melbourne led national falls, down 1.4% and 1.2%, respectively, but the declines also spread to the previously resilient capital cities of Brisbane, down 0.6%, and Adelaide, down 0.2%.
The broadening of the market downturn came amid cumulative demand-side pressures, with the decline in home values remaining heavily skewed toward higher-value properties. Upper-quartile home values fell 3.2% nationally during the three months to July, compared with a 0.3% gain across the lower price tier, according to the report.
Perth posted a modest 0.1% increase after a revised 0.5% contraction in June.
"Perth in particular has seen significant shifts, with June growth revised 120 basis points lower in our latest update, which pulled the once-booming city into negative territory for that month," said Gerard Burg, Cotality's head of research.
He added that capital city auction clearance rates have stayed below 50% since late May, pointing to a mismatch between the pricing expectations of buyers and sellers. Sellers are adjusting to falling demand, with new listings decelerating as vendors look to wait out weaker market conditions.