Australian Home Prices Continue to Rise in November Despite Cooling in Major Cities

Australian home prices climbed again in November, though momentum slowed in key markets like Sydney and Melbourne as expectations of delayed interest rate cuts weighed on buyer sentiment. According to new data from property consultant Cotality, formerly CoreLogic, national home values rose 1% from October to reach a median of A$888,941. While slightly below October’s 1.1% increase, prices are still up 7.5% so far this year, highlighting ongoing strength in the country’s housing market.

The latest surge was led by smaller capital cities, where affordability remains comparatively better. Perth posted the strongest monthly gain with a 2.4% jump, followed by Adelaide at 1.9%. In contrast, growth in Australia’s two largest and priciest cities slowed noticeably. Sydney home values increased just 0.5%, and Melbourne recorded a modest 0.3% rise, reflecting weaker sentiment amid concerns that borrowing costs may stay elevated longer than expected.

The Reserve Bank of Australia has cut rates three times this year, yet a hotter-than-expected third-quarter inflation report has tempered hopes for further easing. Market pricing now suggests only a 50-50 chance of a rate hike by late 2026. Softer demand was also reflected in auction clearance rates, which hovered in the lower 60–70% range across Sydney and Melbourne through late November—below the decade’s average.

Cotality’s research director Tim Lawless noted that rising inflation and the likelihood of stable or higher interest rates could weigh on housing confidence. He added that stretched affordability is already steering growth toward lower-priced segments of the market. Regulators are also stepping in, with APRA announcing its first cap on high debt-to-income loans beginning February to reduce emerging risks.

Economists expect price growth to moderate in 2026 as affordability worsens, credit conditions tighten, and macroprudential controls increase. AMP chief economist Shane Oliver warned that the outlook for interest rates and regulatory measures will likely contribute to slower gains ahead.