Cotality’s national home value index rose by just 0.3%, marking its slowest pace of growth since January 2025, driven by declines in Sydney and Melbourne.
Sydney home values are 1% lower than their November peak, while Melbourne values are 1.9% lower than their November 2025 cyclical high and 2.3% lower than the March 2022 peak.
Every capital city recorded a slower pace of growth during April, but conditions remain highly diverse.
Perth values rose 2.1% in April, adding more than A$21,000 to the median dwelling value.
Brisbane, Adelaide and Darwin also saw growth slow, but from a high base, with values still rising by more than 1% month-on-month in each city.
Cotality research director Tim Lawless said the housing market has been losing momentum from late last year as affordability and serviceability constraints weighed on demand.
“Now we have the additional downside pressure of higher interest rates, sentiment has fallen off a cliff, and rising inflation is set to drive the cost of debt even higher,” he said.
Softer housing conditions are a result of a slowdown in buyer demand.
Estimates of capital city home sales over the past three months were 5.4% lower than a year ago and 7.4% below the previous five-year average.
Advertised stock levels have also lifted in the weakest markets, with Sydney 9.4% above the five-year average and Melbourne 2.2% above average.
This imbalance between demand and supply is also showing up in auction clearance rates, which have held below 55% since the last week of March.
Growth has been concentrated in lower-priced segments, with every capital city recording stronger growth in the lower quartile, as demand concentrates where credit availability and first home buyer incentives have the greatest influence.
“The largest difference between upper and lower quartile value growth is in Sydney, where lower-tier house values are up 2.9% year-to-date compared with a 3.3% fall across the most expensive quarter of the market,” Lawless said.
Regional markets have been more resilient amid the broader slowdown, supported by relatively lower values and above-average internal migration.
Over the first four months of the year, the combined regionals index rose 4.2% versus a 1.8% lift across the combined capitals. Even so, momentum is easing, with the 0.9% monthly rise in April being the smallest increase in nine months.
