Home values fall for seventh consecutive month as interest rates dent demand

Centre of downturn shifts away from Sydney and Melbourne, but after such strong growth most homeowners still sit on sizeable gains

Australian home values have dropped for a seventh consecutive month, with prices in the capital cities now falling at the fastest pace in 40 years as rising mortgage rates scare off buyers.

Cotality data shows the centre of the downturn is also shifting away from Sydney and Melbourne toward the mid-sized state capital cities, with Brisbane and Perth leading October’s declines.

Combined values across the state and territory capital cities fell 1.4% over the month.

Cotality’s research director, Tim Lawless, said the downturn was now broad-based, with capital city home values down 8.1% since March.