The cash rate has risen again and home values have now fallen for six months in a row. For anyone with a mortgage, that's a squeeze. For anyone getting ready to buy, it's a market that has stopped rushing them.
The cash rate now sits at 4.6%, its highest level since 2011, after the RBA's fourth rise this year. National values fell 1.1% in September, the sixth monthly decline in a row. Figures are indicative only and move month to month.
There are more homes on the market than this time last year, properties are taking longer to sell and buyers have room to compare, do their due diligence and negotiate. If you're planning a purchase, having pre-approval in place before you start inspecting is what lets you act on that.
Interest Rate NewsWhat The September Rate Rise Means
In September the Reserve Bank of Australia lifted the cash rate by 0.25 percentage points to 4.6%. In its statement, the RBA said some of the inflation risks it had flagged earlier are now emerging, pointing to ongoing disruption to global oil supply and stronger than expected growth and inflation in Australia. It also said it's prepared to raise the cash rate again if needed.
Many lenders passed the rise on to their variable rates within days. On a $700,000 loan at an average variable rate, the increase adds roughly $107 a month to repayments. That figure is indicative only and depends on your rate, balance and loan term.
The pressure is showing. Roy Morgan research found 32.3% of mortgage holders were at risk of mortgage stress in the three months to August, and consumer confidence fell after the latest rise. Economists are divided on whether the RBA will lift rates again or hold for the rest of 2026, and many believe rate relief could be more than a year away. The next cash rate decision is on 3 November.
If your repayments have climbed and nobody has looked at your loan in a while, a home loan health check is worth more now than it was a year ago, and these are the questions worth asking when you book one.
Home Value MovementsWhere Prices Moved In September
National home values fell 1.1% in September according to Cotality. Brisbane recorded the largest monthly fall at 1.5%, followed by Sydney at 1.4% and Melbourne at 0.7%. Darwin was the only capital city to record growth, up 0.4%.
Cotality research director Tim Lawless expects values to keep falling into 2027 as higher interest rates weigh on demand. The gap between the cities and the regions is also widening. Regional values rose 5.6% over the past year, while values across the combined capital cities fell 1.8%.
For buyers, the practical change is pace. New listings are running below last year, but total listings are well above it, so the stock that is available is sitting on the market for longer. We looked at how that played out through spring in whether buyers really have more choice this year.
Home Value IndexState By State
| State | Auctions | Clearance | Private sale | Monthly change |
|---|---|---|---|---|
| VIC | 695 | 49% | 1,060 | -0.7% |
| NSW | 849 | 37% | 1,073 | -1.4% |
| ACT | 70 | 41% | 82 | -1.1% |
| QLD | 292 | 21% | 725 | -1.5% |
| WA | 16 | 31% | 404 | -1.2% |
| NT | 6 | 67% | 30 | 0.4% |
| TAS | 2 | 50% | 131 | -0.5% |
| SA | 151 | 38% | 209 | -1.3% |
Monthly home values figures as of 30 September 2026. Auction results, clearance rates and recent sales for the week ending 11 October 2026. The clearance rate is preliminary, current as of 4:30 PM AEDT, 13 October 2026. Sources: Cotality Daily Home Value Index, CoreLogic and realestate.com.au auction results. Figures are indicative only.
Closing OutGetting Ready For Your Next Move
A market with more choice and less urgency rewards the buyers who are ready before they find the property. Pre-approval gives you a clear budget and the confidence to make an offer when something suits. If you're buying your first home, we've unpacked how a slower market could work in your favour.
If you're weighing up a different route into property, our guide to renting where you live and buying where you can afford covers the strategy and its trade-offs. And with more money moving online at every stage of a purchase, it's worth reading how to spot common red flags before you transfer a deposit.
