Newcastle home values slip again as national housing downturn deepens

Newy 87.8 FM – Australia's national Cotality Home Value Index fell 1.1% in September 2026, its sixth straight monthly decline, leaving national values 5.2% below their March 2026 record high.

According to Cotality data, Newcastle and Lake Macquarie dwelling values fell 0.7% in September, the fifth consecutive monthly decline locally since the region's April 2026 peak. The median dwelling value sits at about $1.008 million, 4.1% below that peak.

The broader Hunter is telling a different story on annual figures. Cotality's Home Value Index ranks the Lower Hunter ninth among regional NSW markets for annual growth, up 9.3% with a median of $785,985, while the Upper Hunter ranks tenth, up 9.0% with a median of $585,556.

Across regional NSW, values fell 0.7% for the month and 2.2% for the quarter, but remain 3.4% higher over the year, with a median of $824,912. Nationally, 71% of regional sub-markets recorded a monthly decline.

Sydney values dropped 1.4% in September and are 8.6% below their February 2026 peak. National sales volumes are down 19.1% year-on-year, and capital-city median days on market have risen to 39 from 23 a year ago.

Cotality's stated outlook is 'a gradual drift lower in housing values rather than a material downturn'.

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