Australian Home Values Drop for Seventh Month as Rate Hikes Dent Demand, Brisbane and Perth Lead Declines

Australian home values fell for a seventh consecutive month in October, with capital city prices now declining at their fastest pace in four decades, according to Cotality data. The downturn, initially concentrated in Sydney and Melbourne, is spreading to mid-sized capitals, with Brisbane and Perth leading the latest declines as rising mortgage rates continue to scare off buyers. The shift signals that the housing correction is broadening beyond the most expensive markets. Despite the falls, most homeowners still hold substantial equity after years of strong price growth, cushioning the impact for many. The Reserve Bank's aggressive rate hikes have sharply reduced borrowing capacity, cooling demand and pushing prices lower. Economists expect further declines as rates remain elevated, but the pace may moderate if inflation eases. The key takeaway: housing weakness is no longer a Sydney-Melbourne story, and mid-sized cities are now feeling the squeeze.