2026.01.0123:41:09UTC+00Australian Home Prices Rise the Least in 7 Months

In December 2025, Australia's Cotality Home Value Index experienced a month-over-month increase of 0.5%, down from the previous month's 1.0% rise, representing the smallest growth since May. This deceleration indicates a cooling trend in the housing market, driven by affordability challenges, high borrowing costs, and reduced demand as the year closes, which have collectively dampened buyer activity. Growth slowed in cities like Brisbane, with an increase of 1.6% compared to 1.7% in November, and Perth, with values rising by 1.9% against the prior 2.4%. Meanwhile, Adelaide's growth rate steadied at 1.9%. Conversely, housing values declined in Melbourne and Sydney by 0.1%, where previous growth had been 0.3% and 0.5%, respectively. Nonetheless, despite the monthly slowdown, national home values saw a significant year-on-year increase of 9.2%, up from November's 7.2% growth rate.