Property headlines can make it sound as though the whole country is moving in the same direction. But when it comes to Australian home values, the national figure only tells part of the story.
Cotality’s Home Value Index recorded 0.0% annual growth to 30 September 2026. In other words, the national index ended September at the same level as a year earlier.
That doesn’t mean prices stood still throughout the year, or that your home’s value stayed the same.
What does 0% annual growth actually mean?
An annual result compares two points in time. Prices can rise for part of that period and fall later, leaving the index back where it started.
That distinction matters here: national home values fell 1.1% during September itself. A flat annual result and a falling monthly result can both be true.
Australian home values: different cities, different results
The national result also brings together markets with very different experiences. Over the 12 months to 30 September 2026, Cotality reported:
- Darwin: up 11.9%
- Perth: up 10.1%
- Sydney: down 7.0%
- Melbourne: down 6.2%
These are city-wide index movements, rather than a valuation of every home in those cities. Even within the same city, different suburbs and property types can have different results.
So when you hear that property prices are “up” or “down”, ask: where, what type of property, and over what period?
What matters when a lender values your home?
For a home loan application, the lender needs a value it accepts for your particular property. A national growth figure cannot provide that on its own.
Depending on the lender and application, the assessment may use an automated estimate, a desktop assessment or an inspection. Property details and relevant local market evidence, such as comparable sales, help inform the result.
An agent’s appraisal or an online estimate can be a starting point, but it may differ from the value a lender accepts.
How does your property’s value affect your equity?
Equity is the difference between your property’s value and the amount you owe against it.
For example: if a lender values your home at $900,000 and your home loan balance is $600,000, your total equity would be $300,000.
That doesn’t mean you can borrow the full $300,000. The amount you may be able to access depends on the lender’s loan-to-value limits, your income, expenses, existing debts and other lending criteria.
Accessing equity also involves taking on additional debt and repayments. Understanding both the value of your home and what you can comfortably afford is an important part of the conversation.
Thinking about your next move?
Whether you’re buying your first home, refinancing your existing loan or investing in property, we’re here to answer your questions and help you understand your options.
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Market source: Cotality Home Value Index, data to 30 September 2026, released 1 October 2026. Figures describe historical index movements and are not forecasts or individual property valuations.
Disclaimer: This article contains general information only and does not constitute credit, financial, tax or legal advice. Individual circumstances vary, and readers should seek professional advice tailored to their situation before making any financial decisions. All finance applications are subject to lender approval, eligibility criteria and lending policy.
