Canberra property prices stabilise in April

Prices for homes in Canberra did not move according to the CoreLogic Home Value Index for April.

That put them out of step with major capitals including Sydney and Melbourne where home prices were on the rise in April.

Sydney home values increased by 1.3 per cent in April and Melbourne's by just 0.1 per cent.

"The monthly rate of decline in Canberra dwelling values has been losing momentum since September last year, culminating in a stable monthly reading through April," said CoreLogic Research Director, Tim Lawless.

"Considering the trend towards stabilisation has been evident since September last year, it does look as though the ACT housing market is moving through a trough, although we are yet to see values rise."

Fewer people listing their homes for sale and growing demand for homes are two factors behind home prices stabilising.

"The number of new listings flowing into the ACT housing market has held around average levels or below average levels since September last year," said Mr Lawless.

"Over the four weeks ending April 23, the flow of new listings was tracking two per cent below the previous five year average."

Meanwhile there is higher demand for homes as overseas migration picks up again post COVID.

"Demand is rising for a number of reasons, including the surge in net overseas migration to the ACT along with a lift in confidence as interest rates reach or approach a peak and buyers take advantage of the drop in prices."

Despite prices no longer dropping in April, it was too early to call an end to price decline.

"Although factors supporting a trough in the housing decline look convincing, there are still plenty of headwinds that are likely to keep a lid on housing prices," Mr Lawless said.

"This includes a lag in the rate hiking cycle catching up with household balance sheets, interest rates still being high and lending policies remain cautious."

While property prices did not move in April in Canberra overall, in the last three months prices dropped one per cent and over the past 12 months they have been cut by 9.3 per cent.

The median home price in Canberra now sits at $839,732.

However, while house prices dropped in Canberra in April by 0.2 per cent, apartment prices actually rose.

With a 0.5 per cent rise in value, the median price for an apartment in Canberra now sits at $603,696.

The median house price in Canberra is $946,463.

Nationally April is the second month that prices have risen across the country overall.