The median price of a Canberran home is now $490,000, according to the latest home value figures from RP Data and Rismark issued this morning.

The price is second only to Sydney, which recorded a median home price of $530,000.

Although the median dwelling price increased over the month, seasonally adjusted figures recorded a drop in the value of homes in the capital.

Home values fell by 1.3 per cent in Canberra throughout October, bringing values to 1.6 per cent lower than they were this time last year.

RP Data's senior research analyst Cameron Kusher said the median price was calculated using settled sales over the quarter while the index itself looked at values, meaning the measures could produce different trends from time to time.

He said Canberra's home values, which have fallen at a faster rate than the capital city average for the past year, weren't expected to improve in the near future.

"It really comes back to affordability and confidence at the moment," he said.

"Until confidence returns and we get some clarity around the public service, I wouldn't expect to see any gains in the Canberra housing market."

CommSec economist Savanth Sebastian said the drop in values could mean Australians were due for a rates cut.

“The last thing the Reserve Bank wants to see is significant growth in property prices, effectively creating a housing bubble,” he said.

“The latest fall in prices will give the Reserve Bank a degree of comfort.”