National home prices fell in April 2026, marking the first monthly decline of the year, according to the latest PropTrack Home Price Index report.
The data shows a 0.1% fall in national home values over the month, taking prices just below their March peak.
Despite the dip, prices remain up 8.5% year on year, with the median home value reaching $910,000, an increase of around $92,200 over the past 12 months.
The report, authored by Eleanor Creagh, says momentum has eased across the housing market as higher interest rates weigh on borrowing capacity and buyer confidence.
Capital city prices fell 0.2% in April but remain 7.7% higher over the year, with a median value of $1,017,000.
Sydney and Melbourne recorded the largest monthly declines, down 0.5% and 0.3% respectively. Hobart was the strongest performing capital city, rising 0.3%, while Brisbane, Adelaide and Perth each increased 0.2%.
Over the year, Perth continued to lead price growth at 21.5%, followed by Brisbane at 17.5%, Darwin at 16.9% and Adelaide at 13.9%.
Regional markets continued to outperform capital cities, rising 0.2% over April and 10.7% over the year, supported by relative affordability and lifestyle demand.
The report says conditions are being shaped by softer demand and tighter financial settings, with auction clearance rates easing and affordability constraints increasing.
“National home prices edged lower in April, suggesting a turning point in the housing cycle.
“Momentum has clearly slowed, marking a transition from broad-based growth to a more uneven phase. Rate-sensitive inner-city markets are leading the shift, particularly in Sydney and Melbourne, where price declines have emerged after back-to-back interest rate rises.
“Overall, the housing market is rebalancing as demand softens and growth momentum eases. Auction clearance rates have softened pointing to a growing mismatch between buyer and seller expectations.”
At the same time, she said higher interest rates are reducing borrowing capacity, while uncertainty is weighing on confidence.
“While price growth is expected to slow, a large correction remains unlikely. Strong equity buffers, a resilient labour market and limited forced selling are helping to stabilise conditions and cushion price falls. Population growth and ongoing supply constraints exacerbated by higher construction costs and elevated interest rates continue to place a floor under prices.
“The adjustment is expected to be gradual, but slower growth and further price declines are likely.”
Despite the slowdown, structural factors including population growth, supply shortages and high construction costs continue to support underlying price levels.