Hobart was the only Australian capital city to avoid a fall in home prices in October, as the national housing downturn extended into a seventh month, a new report shows.
The realestate.com.au Home Price Report, released today, found Hobart’s median home value remained steady at $734,000 over the month.
Prices are now 0.6% below the city’s May peak but remain 4.6% higher than a year ago.
House prices were unchanged in October, while unit prices slipped 0.2%. Over the year, house values rose 4.9% and unit values increased 3.1%.
In regional Tasmania, prices dipped 0.2% over the month but remain 8.7% higher than in October 2025, with a median value of $593,000.
Nationally, prices fell 0.3% in October, the seventh consecutive monthly decline. The report found national prices are 4.3% below their March peak and 1.9% lower than a year ago.
Adelaide recorded the largest monthly fall, down 0.6%, followed by Sydney and Brisbane at 0.4% each. Sydney has overtaken Melbourne as the capital with the deepest fall from its peak, at 6.7%.
Report author and realestate.com.au senior economist Eleanor Creagh said higher mortgage rates were limiting what households could borrow and pay.
“Spring has brought more choice for buyers, but not the usual lift in momentum,” she said.
Regional markets continued to outperform the capitals, she said, while units had held up better than houses “as affordability increasingly shapes demand”.
Looking ahead, Creagh said any further interest rate rise would reinforce the downturn, with softer conditions likely to continue into 2027.
“Further price falls are likely as higher borrowing costs constrain demand, with another potential interest rate increase adding further downward pressure on prices,” she said.
