Australia's housing market has shown clear signs of cooling, with national home prices recording their slowest growth in more than a year at just 0.3 percent in April 2026. The deceleration was primarily driven by house price falls of 0.6 percent in both Sydney and Melbourne, the country's two largest property markets, according to data from Cotality.

Gerard Burg, Cotality's head of research for Australia, noted that a clear pattern is emerging, with housing market momentum significantly slowing after multiple interest rate rises. The prospect of another rate increase when the Reserve Bank meets next week could pose additional challenges for the Australian housing market, potentially further dampening price growth across the country.