Australian Home Prices Fall for Seventh Month as RBA Decision Looms

OTN Bangla, Melbourne: Australia’s housing downturn has deepened, with national dwelling values falling another 1.2 per cent in October, marking a seventh consecutive monthly decline. Attention now turns to the Reserve Bank of Australia’s interest rate decision on Tuesday, 3 November.

According to Cotality’s Home Value Index, national dwelling values are now 6.7 per cent below their March peak—equivalent to a decline of approximately $63,400 in the value of the median Australian home.

Across the combined capital cities, values have dropped 8.1 per cent over seven months. ABC reporting on the figures indicates that the pace of decline is tracking faster than previous housing downturns over the past 40 years.

The housing slowdown comes as inflation remains elevated. Australian Bureau of Statistics figures show annual headline inflation rose to 4.3 per cent in September, up from 4 per cent in August.

Annual trimmed mean inflation, an important measure of underlying price pressures, increased to 3.6 per cent from a revised 3.5 per cent in August. The figures have intensified attention on the central bank’s next move.

At its meeting on 29 September, the RBA increased the cash rate target by 25 basis points to 4.60 per cent.

Explaining that decision, the central bank pointed to persistent inflation, higher global energy prices, rising technology-related goods prices and pressure on domestic capacity. Businesses were continuing to experience cost pressures, with some raising prices or considering increases.

However, the RBA also acknowledged weakening conditions in the property market. Its September statement noted that housing prices had fallen in most capital cities and new housing loans had declined noticeably.

The central bank therefore faces competing pressures: inflation remains high, while the housing market and borrowing activity are slowing.

Westpac economists previously shifted their forecast to make a further November rate increase their base case. That remains a forecast, rather than a confirmed RBA decision.

The Reserve Bank is scheduled to announce its next decision at 2.30 pm on Tuesday, 3 November 2026, Sydney and Melbourne time. With home values falling and inflation rising, the announcement will be closely watched by borrowers, prospective buyers and property sellers.