Canberra house values decline 0.4pc as property prices fall for the first time in three years, CoreLogic home value index shows

CoreLogic's May home value index shows Canberra house values fell 0.4 per cent for the month to a current median of $1,070,403.

Canberra units are yet to see a decline, reporting 0.9 per cent growth for the month of May. The median unit value is currently $622,437.

Across all dwelling types - houses and units - the median value declined marginally by 0.1 per cent to a current median of $940,026. It's the first monthly decline in dwelling values since July 2019.

Larger declines were seen in Sydney and Melbourne, where dwelling values fell 1 per cent and 0.7 per cent respectively.

The declines saw the national home value index fall 0.1 per cent, its first monthly decline since September 2020.

Taking Canberra's marginal decline into consideration, housing values in the capital remain 37.9 per cent higher than pre-pandemic levels.

Whether Canberrans can expect house prices to decline steeply from here will depend on future changes to the cash rate, CoreLogic head of research Eliza Owen told ACM, the publisher of The Canberra Times.

"I would imagine, coming off the back of an extraordinary upswing in which this market hasn't seen a fall in value since mid-2019, there is probably going to be a significant level of adjustment in a higher rate environment which, as we can see, is just starting to come through now," she said.

"I think those rates of decline are going to accelerate in the coming months, but ultimately the full extent depends on the interest rate environment."

Despite talks of a broader property price decline, Canberra couple Daniel Arnold and Gina Morrison were eager to get a foot in the door as soon as possible.

They're in the process of buying their first home, which they found through Nick Purnell of Purnell Citywide Real Estate, and are expecting to settle on their one-bedroom apartment in the next week.

The pair said they're relieved to have found their new home after a difficult, year-long search.

"Our priorities really changed a bit over time. Initially, we were looking for something a bit bigger and I really wanted there to be at least a little courtyard garden because I do like to grow things, but I think over time and given prices [were rising] we sort of shifted what were 'musts'," Mr Arnold said.

Ms Morrison said within 12 months their price range went from around $400,000 to between $500,000 and $600,000.

"[It was] quite disheartening at points because we actually had two occasions where we came super close and we were either outbid or just put as second preference to a cash buyer," she said.

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Further interest rate rises aren't a major concern for the couple, however it did impact the amount they borrowed.

"It has been on my mind a bit but I think that played into making sure the loan amount wasn't so high that we'd be under pressure if they did go up suddenly," Mr Arnold said.

The Canberra couple say they were lucky to be able to live with family while they saved their deposit.

Mr Arnold said if property prices were to decline over the next few months, it may ease some pressure for others looking to purchase a home.

"I think we're a long way off housing here becoming more about people just having somewhere to live, but I'd really like it to be more that way," he said.

The slight decline in house prices didn't come as a surprise to Mr Purnell, who said apartments have begun outperforming houses in Canberra.

"I've seen a bigger [price] drop in houses than what I have in apartments, I think apartments have actually held up really well and some sectors of the apartment market, like one bedrooms, probably have gone up in value," he said.

He said strong interest from first home buyers like Mr Arnold and Ms Morrison are keeping the ACT's apartment market buoyant.

"I think there's still a lot of first time buyers out there and I think that's probably why we're seeing such strong [prices] in the one-bedroom apartment sector because that's traditionally where they're getting into the market," Mr Purnell said.

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