Australian property market shifts may favor homeowners upgrading to larger homes

In Australia, a softening property market may offer advantages for homeowners looking to upgrade to larger properties. As national home values fell 0.7 per cent in July—the largest monthly decline since December 2022—the gap between selling prices and new purchase prices may narrow.

Data from Cotality indicates that the combined capital-city market is seeing increased vendor discounting and softer auction clearance rates. For upsizers buying and selling within the same market, these moderating values can reduce the absolute dollar amount required to bridge the gap between their current home and a larger residence.