Home values rose marginally in April, with the latest property price figures showing Canberra has emerged from "relatively soft" market conditions.
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The longer-term picture is even more positive for home owners, according to one bank's forecast.
The latest home value index by CoreLogic found Canberra house values rose 0.1 per cent in April, while unit values rose 0.2 per cent.
The median house value in Canberra finished the month at $972,699. Canberra units, which includes apartments and townhouses, had a median value of $592,879.
While the monthly growth was marginal, it contributed to a 1 per cent rise in property values over the past three months.
"The smaller capitals have emerged from relatively soft conditions, with both Hobart and ACT recording three months of consistent, albeit mild, rises in home values," the report stated.
After no change in Canberra house prices in 2023, growth is expected to pick up again this year, Bank of Queensland's latest price forecast shows.
The bank expects Canberra house prices to rise 3 per cent by the end of the year, before a 6 per cent hike in 2025.
Bank of Queensland chief economist Peter Munckton said prices had been broadly tracking in line with his predictions so far this year.
He said Perth was on track for a very strong year for house price growth, while "decent growth" was expected in Brisbane and Adelaide.
"Modest but decent growth is likely for Sydney. Some growth appears likely in the Canberra, Darwin and particularly Hobart markets this year," he said.
A cash rate cut would boost further house price growth in 2025, Mr Munckton said.
But the likelihood of an interest rate cut was becoming more uncertain, after higher-than-expected inflation figures in March.
Quarterly inflation rose to 1 per cent in the three months to March, higher than the 0.8 per cent that was forecast.
The figures had fuelled speculation of another rate rise, CoreLogic's home value index stated.
The report noted while downside risks to the housing market were mounting, property values were likely to hold steady.
"Despite the worsening risk profile, housing values are likely to be propped up by the mismatch between housing supply and demand; a situation that doesn't look like it will change in the near future," the report noted.