If you’ve seen house prices dropping, you might think life is getting easier for everyone. For renters, it isn’t. And for buyers, it can point to opportunities, though not without risk.

What’s Happening

Ray White’s chief economist, Nerida Conisbee, says dwelling values across the capital cities fell 4.3 per cent over the September quarter. Over the same period, rents are still 5.5 per cent higher than a year ago.

So prices are going down while rents keep going up. Conisbee says investor activity has weakened since the May Budget, which reduces the number of rental homes being added when supply was already tight. Building new homes is also getting harder. The cost of a new dwelling has risen about 48 per cent since the end of 2019, and she says that means fewer projects will stack up financially.

Australia also isn’t building enough. Trend dwelling approvals were 18,202 in August, below the average of about 20,000 a month needed to deliver 1.2 million homes over five years.

Local conditions differ. Cotality’s September data shows Perth values still up 10.1% over the year, even as estimated sales fell 24.2%.

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What This Means for Buyers

At Lorven, we believe research matters more than reacting to market headlines. Falling prices can open the door to good properties, but the best buys aren’t always the cheapest ones. A few things we look at with our clients:

Rental demand and supply. Before buying, we check how many tenants are chasing homes in an area and how many properties are available. Suburbs with strong tenant demand and tight supply may hold up better.

Rental yield, vacancy rates and growth. A high yield looks great on paper, but it needs to be paired with low vacancy and solid long-term growth. Our blog on rental yield vs cash flow explains why the headline number doesn’t always pay the mortgage.

Long-term value, not short-term dips. Prices move up and down, and Conisbee notes that a housing shortage does not stop prices falling when higher rates cut borrowing capacity. Values may fall further, and no one can reliably pick the bottom of a cycle. We focus on long-term fundamentals rather than short-term moves.

Areas with growth drivers. Some suburbs may benefit from new infrastructure, land releases and future housing projects. Demand can build before prices follow, but growth is never guaranteed.

Why Research Matters More Than Ever

When the market is changing, guessing is risky. A buyer’s agent does the homework for you. That means comparing suburbs, checking the numbers and spotting the properties that tick the right boxes, including off-market options you may never see online.

Our services cover residential, commercial and SMSF purchases. You can also meet the Lorven Buyers Agency to see who will be working for you.

Ready to Get Started?

Call us on 1300 143 999 or send us a message. You can also book a free consultation online to talk about your goals. Our expert buyer’s agents will help you read this changing market and make well-informed decisions.

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Disclaimer: This article is general information only, current as at 12 October 2026, and does not constitute financial, legal or investment advice. It does not take into account your personal circumstances, and independent professional advice should be sought before making any property decision.