The average Australian home has lost $63,400 in value in 7 months. Has yours?
Key takeaways
- Nationally, Australian property values have fallen for 7 months in a row to a median of around $885,000.
- The average home is now worth around $63,400 less than it was at the market's peak in March.
- What's next: With the downturn showing little sign of slowing, what does this mean for you and your finances?
Cotality's latest Home Value Index shows national dwelling values fell another 1.2% in October, to a median of $884,855.
This follows 6 straight months of price falls, and takes the total decline since March to 6.7%.
That's equivalent to around $63,400 in lost value for the median Australian dwelling.
So how much could your property be worth now, what does it mean for you – and what happens next?
How much Australian house prices have fallen?
The latest figures show that Australian dwelling values have fallen 6.7% since their March 2026 peak.
To put that into perspective, here's what a 6.7% decline would mean for properties at different price points:
| Previous property value | Estimated value now | Value lost |
|---|---|---|
| $600,000 | $559,800 | $40,200 |
| $800,000 | $746,400 | $53,600 |
| $1 million | $933,000 | $67,000 |
| $1.2 million | $1,119,600 | $80,400 |
These are illustrative examples applying the national decline to different property values. Your property's actual value will depend on its location, property type and local market conditions.
🏡 What's next if: you bought your home in the last 2 years
→ If you bought recently, especially if you bought with a smaller deposit, falling prices could eat into your equity. This leaves you with less of a financial buffer.
→ Avoid making a rushed decision: keep up with your repayments, pay extra if you can, ask for an interest rate reduction, and focus on building equity over time.
🏡 What's next if: you've owned your home for 3+ years
→ You may have a healthy amount of equity, even after recent price falls.
→ If you're not planning to sell any time soon, short-term interest rate fluctuations are part of your day-to-day finances. If you haven't refinanced this year, get comparing.
🏡 What's next if: you're planning to sell your home
→ You'll need to be realistic about what buyers are willing to pay in the current market.
→ Get an updated property appraisal, research comparable recent sales and consider whether you have flexibility around your asking price and timing.
🏡 What's next if: you want to refinance to access equity
→ Falling property values could reduce how much equity you can access, as lenders will base their calculations on your home's current valuation.
→ Before applying, check your loan-to-value ratio (LVR). Lenders will assess your income, expenses and ability to repay the larger loan, so make your application as attractive as possible (stop using BNPL, less takeaways and pay off debts – at least for a few months).
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