It’s the question every investor asks, and right now the answer is more nuanced than usual. Home values are falling, interest rates are climbing and rental conditions are shifting. Here is what the latest data says.

Where the Australian property market stands

Cotality’s Home Value Index shows national dwelling values fell 1.2% in October 2026. That was the seventh consecutive monthly fall, leaving values 6.7% below the March 2026 peak. For the median Australian dwelling, that is a drop of about $63,400. Brisbane (down 2.0%), Perth (down 1.7%) and Sydney (down 1.6%) recorded some of the sharpest falls.

Interest rates are the main headwind

On 3 November 2026, the Reserve Bank of Australia (RBA) lifted the cash rate by 0.25 percentage points to 4.85%, its fifth rise this year and the highest level since 2008. The Board’s vote was split, with six members voting to raise and three to hold. The next RBA decision is due on 8 December.

Higher rates mean higher repayments and reduced borrowing capacity, which has cooled buyer demand and pushed prices down. If you’re weighing up an investment, you should test your numbers against further rate rises, not just today’s rate.

What’s working in investors’ favour

• Less competition. Falling prices and softer buyer sentiment can mean more time to inspect, negotiate and make considered decisions.
• Rents are still growing. Cotality reports annual rental growth of 5.2% across the combined capital cities in October. That growth has slowed, but rents are still rising.
• Long-term fundamentals. Australia’s housing shortage and population growth have historically supported long-term demand, though they don’t protect against short-term price falls.

What to be cautious about

• Prices may fall further. Cotality has warned the current downturn is on track to be the sharpest in at least 40 years, and no one can say when it will bottom out.
• Rental conditions are loosening. Vacancy rates across the combined capitals rose to 2.4% in October, a five-year high. Slower rental growth can put pressure on yields.
• Cash flow matters more than ever. With rates at an 18-year high, a property that only works on paper at lower rates can quickly become a strain.
• Markets are not moving together. Performance varies by city, suburb and property type, so national figures only tell part of the story.

So, is now a good time?

There’s no universal answer. Trying to pick the exact bottom of the market is notoriously difficult, and many experienced investors focus on factors they can control instead:

1. Your finances. Can you comfortably service the loan if rates rise again?
2. Your time horizon. Property is typically a long-term investment, measured in years and decades rather than months.
3. The asset itself. Location, rental demand, build quality and growth drivers matter more than headline market trends.
4. Your strategy. Capital growth, rental yield and diversification goals call for different property choices.

Do your research before you decide

Market downturns can create opportunities, but they also raise the stakes on getting each decision right. Before investing, speak with a qualified financial adviser, mortgage broker and accountant about your own circumstances.

Considering your next investment? Contact the Fincorp team to talk through your goals and explore your options.

General information only. This article does not constitute financial, tax or legal advice and does not consider your personal objectives or financial situation. Figures are sourced from Cotality, the Reserve Bank of Australia and related market reports as at November 2026.