Canberra median house price drops below $1 million: CoreLogic October home value index

But some sellers remain confident there are serious buyers in the market, who are willing to spend on the right property.

CoreLogic's monthly home value index, released on Tuesday, revealed the median value across Canberra houses dropped by 1.1 per cent to $990,851.

The median house value ticked over the $1 million mark in January and reached its peak in June at just over $1.07 million.

Canberra unit values also declined in October, dropping by 0.7 per cent to a median of $608,653.

It takes the median value of all Canberra dwellings - including houses and units - to $876,567.

While the falling values are giving buyers more negotiating power, some Canberra sellers are seeing considerable interest in their homes.

After 16 years, Donna Lee is selling her Wanniassa home at auction this month with plans to purchase a larger property with her fiance.

She had factored in the market conditions when deciding to list her house for sale.

"We waited until spring because the gardens are beautiful and we knew that would be peak time [to sell]," she said.

"But it's interesting ... a few people have said to us, 'Hurry up and sell because the market's going down'.

"So I was aware that the market had hit a high point last year and that things have dropped since interest rates have gone up."

Despite the cooling market, Ms Lee is hopeful her renovated home will attract some serious buyers.

"I love my house and I still think we're going to get a good price for it," she said.

"But I think if we left it even longer [to sell] we may potentially not get as much for it."

Mark McCann of McCann Properties Wanniassa is selling Ms Lee's home and said nearly 70 groups had inspected it in the first week.

"I haven't seen numbers like that since [the peak of] COVID," he said.

"Last year we were getting those kind of numbers."

He said while some buyers were intent on getting a bargain, there were still plenty of genuine buyers in the market.

"The prices are not where they were 12 months ago, prices have come back a little bit, but they're still high compared to two or three years ago," he said.

"I've had a couple of properties pass in at auction and they were both under offer within a couple of weeks."

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After six months of national housing value declines, CoreLogic research director Tim Lawless said the downturn is likely to continue if interest rates keep rising.

"Despite the easing in the pace of decline, with Australian borrowers facing the double whammy of further interest rate hikes along with persistently high and rising inflation, there is a genuine risk we could see the rate of decline re-accelerate as interest rates rise further and household balance sheets become more thinly stretched," he said.

Each of the capital cities recorded a decline in median house values during October, led by Brisbane which saw a 2.2 per cent fall.

Median unit values were also down across every capital except Adelaide, where a 1 per cent increase was recorded.

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