Australian Property Market: What Buyers Need to Know (October 2026)

Australian buyers now face a slower, more negotiable market. Cotality’s October 2026 Housing Chart Pack shows September sales down 20.9% on a year earlier, homes taking a median 41 days to sell, and capital city vendors discounting 4.4%. That means more time and leverage for prepared buyers, but tighter borrowing capacity for everyone.

Latest update (3 November 2026): Cotality’s Home Value Index released on 2 November 2026 shows national dwelling values fell a further 1.2% in October, the seventh consecutive monthly decline, leaving values 6.7% below the March 2026 peak. The analysis below reflects the October 2026 chart pack (September data). Source: Cotality, 2 November 2026.

The six signals at a glance

Signal	Latest reading	Year earlier / benchmark
Homes sold nationally (September)	39,747	down 20.9%
National median time to sell	41 days	26 days
Capital city median vendor discount	4.4%	highest in five years
Total advertised listings	145,573	up 19.1%; 2.7% above five-year average
New listings (four weeks to 11 Oct)	36,440	down 7.9%; 11.9% below five-year average
Four-week auction clearance rate	48.3%	64.4% in late February

Source: Cotality, Monthly Housing Chart Pack – October 2026, published 15 October 2026.

Signal 1: Buyers are hesitating, not disappearing

Sales volumes fell sharply through what is normally a busy spring. Cotality attributes this to reduced borrowing capacity, pressure on household budgets and weak confidence, rather than school holidays or football finals alone.

What it means for you: less competition at many inspections and auctions. Use that time to complete due diligence properly rather than rushing to secure a property.

Signal 2: Borrowing capacity has shrunk

Cotality estimates the RBA’s rate increases since February 2026 have reduced the borrowing capacity of a median-income household by about $90,000, or 9%. The RBA lifted the cash rate target to 4.60% on 30 September 2026 (RBA).

What it means for you: get your finance position confirmed with your lender or broker before you shortlist. A lower purchase price doesn’t help if your approval has moved too.

Signal 3: Stock is building because homes sell more slowly

Total listings are up 19.1% on a year ago even though fewer new listings are coming to market. Stock is accumulating because properties are taking longer to sell, not because more owners are selling.

The shift is most pronounced in Brisbane and Perth, where total listings rose 60.4% and 64.7% respectively over the year, and median selling times rose from 17 to 38 days in Brisbane and from 11 to 26 days in Perth.

What it means for you: more choice in many areas, but tightly held suburbs and well-presented homes can still draw competition.

Signal 4: Vendors are negotiating

Capital city vendor discounting reached 4.4%, its highest level in five years. Across the combined capitals, homes took a median 39 days to sell, compared with 23 days a year earlier.

What it means for you: ask how long a property has been listed and whether the price has changed. Anchor your offer to recent comparable sales, not to a national average discount; well-priced homes in demand may sell close to the asking price.

Signal 5: Values are falling, unevenly

National values fell 1.1% in September and 3.7% over the quarter, taking them 5.2% below the March 2026 peak. Sydney fell 4.9% over the quarter and sits 8.6% below its February peak. Brisbane and Perth each fell 4.7% over the quarter, yet remain up 5.9% and 10.1% over the year. Darwin was the only capital to rise over the quarter (+0.5%).

What it means for you: “the market” is many markets. Compare suburb-level data with the national headline before deciding whether a price represents value.

Signal 6: Regional markets and rents are holding up better

Regional values fell 1.9% over the September quarter compared with 4.3% across the combined capitals, and remained 5.6% higher over the year. National rents rose 5.5% over the year, though quarterly growth slowed to 0.5%. Gross rental yields rose to 3.85%, the highest since August 2019.

What it means for you: for investors, improving yields can strengthen cash flow, but slowing rent growth means you should model conservative rental assumptions.

How to act in this market

1. Confirm finance first. Know your current borrowing capacity and a buffer for further rate changes.
2. Research before you inspect. Use suburb-level value, listings and rental data, not national averages.
3. Shortlist several properties. With more stock available, alternatives give you negotiating strength.
4. Ask about the campaign. Days on market, price changes and any failed contracts all inform your offer.
5. Stay strategy-led. Falling prices are a reason to look carefully, not a reason to buy. The purchase should still fit your long-term plan.

If you’re assessing an investment purchase, our 10 critical checks for better decisions set out the due diligence steps in detail.

Frequently asked questions

Is it a buyer’s market in Australia right now?

Cotality’s October 2026 data shows conditions that generally favour buyers: lower sales volumes, longer selling times, more stock and the largest capital city vendor discounts in five years. Conditions still vary by city, suburb and property type.

Will prices keep falling?

No one can say with certainty. Cotality notes that the outlook depends heavily on inflation data and interest rate decisions; further rate rises would add to headwinds.

Talk through your plan

Equimax Property Investment Advisors is a national advisory, helping investors across Australia build long-term portfolios through strategy, planning and research. To discuss how current conditions affect your plans, book a strategy session or call 1300 943 232. The strategy session takes 60 minutes.