FX.co ★ Australia Home Prices Stall in May

Australia’s Cotality Home Value Index was unchanged in May 2026, following a 0.3% rise in April. This was the weakest monthly result in a year, signalling that the housing cycle is continuing to lose momentum across most markets.

The slowdown has been developing for some time, even before the recent interest rate increases, the escalation of tensions in Iran, and the new tax measures announced in the Federal Budget. Mounting affordability and serviceability pressures are increasingly weighing on housing demand.

Sydney and Melbourne led the downturn, with dwelling values falling 0.9% and 0.8%, respectively. Values in these cities now sit 2.1% and 2.9% below their cyclical peaks recorded in November 2025. In contrast, prices in other capital cities continued to rise, though at a more moderate pace.

Perth and Darwin posted the strongest monthly gains at 1.5%, followed by Brisbane and Hobart at 0.9%, while Adelaide recorded a more modest 0.5% increase.