Australia’s Cotality Home Value Index was unchanged in May 2026, after rising 0.3% in the previous month. The latest reading marked the weakest monthly result in a year as the housing cycle continued to lose momentum across most markets. The slowdown had been building for some time, even before interest rates increased, tensions in Iran escalated, and new tax measures were announced in the Federal Budget, with affordability and serviceability constraints increasingly weighing on demand. Sydney and Melbourne led the downturn, with dwelling values falling 0.9% and 0.8%, respectively, leaving values 2.1% and 2.9% below their cyclical highs reached in November 2025. Elsewhere, home prices continued to rise, albeit at a slower pace. Perth and Darwin recorded the strongest monthly gains at 1.5%, followed by Brisbane and Hobart at 0.9%, while Adelaide advanced 0.5%.