Canberra property prices record modest fall in February, CoreLogic Home Value Index reveals

But a closer look at property prices shows the median value of houses in some suburbs has fallen by up to 15 per cent over the past 12 months.

The latest index saw the median house value in Canberra fall by a modest 0.5 per cent during February to a median of $946,022.

It shows the pace of decline has more than halved since January when the median house value fell 1.2 per cent.

Canberra unit values saw a similar decline in February of 0.4 per cent, taking the median to $596,564.

The gross yield was 3.9 per cent for Canberra houses and 5.2 per cent for units.

The home value index showed Canberra house values fell 8.4 per cent for the 12 months to February.

On a suburb level, the biggest annual decline was seen in O'Connor, in Canberra's north, which saw house values drop 15.1 per cent.

Fraser and Torrens both saw median house value declines of 13.9 per cent, while similar falls were seen in Curtin (down 13.5 per cent) and Campbell (down 13.2 per cent).

The median value across Canberra units fell just 0.5 per cent over the past 12 months.

Macquarie and Cook, both in the Belconnen region, saw the largest falls in unit values, with declines of 11.5 per cent and 8.7 per cent respectively.

Unit values in Denman Prospect fell 8.4 per cent over the year, while Monash saw a 7.8 per cent decline.

The national home value index recorded a "sharp reduction" in the rate of decline during February, the report stated.

The national index declined 0.14 per cent over the month, marking the smallest monthly fall since May 2022 when the Reserve Bank began its rate rise cycle.

CoreLogic head of Australian research ElizaOwen said while the rate of decline has eased, it's not likely to be the bottom.

"I think it's a question of well, are we at the bottom [of house price declines] or is this more that we are in the eye of the storm?" she said.

"And frankly, I think it might be the latter.

"I think that we haven't seen the end of housing market declines just yet given that there are further interest rates expected in the coming months.

"We've still got a lot in the way of cost of living pressures, real wages growth falling and the potential shock of fixed rate borrowers rolling into the variable environment this year and that all present headwinds for housing market performance."

MORE PROPERTY NEWS:

CoreLogic research director Tim Lawless said the stabilisation in housing values coincided with low supply levels and a rise in auction clearance rates.

"So far, it seems prospective vendors are prepared to wait this downturn out," Mr Lawless said.

"The flow of new listings is well below average for this time of the year across each of the major capitals. The flow of new listings will be a key trend to watch over the coming months.

"Any signs of listings activity moving to above average levels could weigh on housing prices."

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.