If you want to withdraw some equity from your property or get a better home loan rate, the time to act is now

Dwelling values are falling; you can see that in all the newspaper headlines but what the headlines don’t tell you is just how much values have increased over recent times.

According to Cotality, national dwelling values fell by 0.9 per cent in August 2026, taking them 3.6 per cent below their peak. That’s your headline right there.

Values are falling but how much higher are they over recent years?

What those headlines don’t mention is that national dwelling values are 23.9 per cent higher over the past five years and 66.5 per cent higher over the past decade. In certain parts of the country the gains have been far in excess of that national figure too.

People don’t like it when the value of what is typically their largest single asset, their principal place of residence, falls, but they lose sight of how much the value of that asset has increased.

Importantly, this is a national benchmark, and over the past five years it has been heavily influenced by weaker growth in Sydney and Melbourne. That matters for two reasons.

First, there is no such thing as a single national or capital city property so individual homes have performed vastly differently from the national and capital city benchmarks.

Second, if you live outside of Sydney and Melbourne the increase in the value of your property has typically been much greater over the past five and ten years, meaning you have seen a much larger increase in the value of the property and subsequently your equity too.

Why are home values now declining?

There is also the reality that the housing market is weakening right now. Four interest rate rises so far this year, stretched housing affordability due to the strong growth in values over recent years and tax changes to investment in property have contributed to falls in values.

The weakened housing market conditions aren’t just evident from falling dwelling values; buyer numbers have thinned as evidenced by fewer sales, an increasing time on market and the level of discounting by vendors increasing.

At the same time, the slower rate of sale is lifting the volume of stock on the market, which means the buyers who remain have far more scope to negotiate on price than they have had in several years.

What is the outlook for interest rates?

The Reserve Bank has now increased the cash rate by a further 25 basis points, taking it to 4.60 per cent. Interest rate markets suggest the cash rate could climb a further 50 basis points.

Higher interest rates, higher inflation and a weakening housing market means that if you are planning on extracting equity for your home or seeking a better home loan rate, the time to be doing this is now.

Home values have started to fall, and the latest interest rate increase, along with the potential for more increases later this year and into next, are likely to push values lower still.

What action should you take?

Higher interest rates would likely deteriorate confidence in the housing market, could lead to a faster rate of decline. This could see your equity position and negotiating power for a better home loan rate with lenders deteriorate.

No one likes to see the value of their home or their investment properties fall but it also highlights the time to act is now before housing values fall further.

Talk to your broker now about getting a new valuation on your property, accessing equity or finding a better home loan rate.