Top end leads housing declines

Prices falls for a 6th month

Cotality reported that housing prices declined -1.1 per cent nationally in September 2026, to be -5.2 per cent below the peak following six monthly declines. 

Source: Cotality

The declines have been driven by Sydney (-8.6 per cent) and Melbourne (-7½ per cent), and more broadly by houses in the most expensive price quartile in the market.

Indeed, given the 5 per cent deposit scheme - and the bottom end of the market being supported by soaring rents and construction costs - there has been no improvement at all in affordability for first homebuyers in the higher mortgage rate environment.

Dr Alex Joiner of IFM Investors charted the data below to demonstrate how price declines have been driven primarily by houses in the most expensive 25 per cent of the market.

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