Canberra house values dipped in May, continuing the local property markets subdued start to 2019, new figures show.
Subscribe now for unlimited access.
or signup to continue reading
But the national property slump is "through the eye of the storm", with the rate of decline in Sydney and Melbourne house prices beginning to slow, according to latest data from real estate analytics firm Core Logic.
![Canberra's house prices dropped marginally in May, but the national property market is showing signs of bouncing back. Canberra's house prices dropped marginally in May, but the national property market is showing signs of bouncing back.](/images/transform/v1/crop/frm/fdcx/doc734jqbpw9h51iuvg93c0.jpg/r0_251_4912_3013_w1200_h678_fmax.jpg)
The figures come a day before the Reserve Bank is widely tipped to reduce interest rates.
Data published on Monday showed Canberra house values fell 0.3 per cent in May, while unit values rose by 0.1 per cent.
The ACT's median house price is $658,407. The average unit is valued at $435,392.
While Canberra's house values are up 0.3 per cent this quarter, the market has softened in the past year following a prolonged period of strong and uninterrupted growth.
Strong growth last year came despite a downturn in the property market nationwide, which was driven by significantly falls in Sydney and Melbourne.
Core Logic head of research Tim Lawless said the strength of Canberra's economy, which was built on low unemployment and faster than predicted population growth, had allowed the city to withstand the worse of the national downturn.
The latest data showed dwelling values nationally had declined 0.4 per cent in May, the smallest month-on-month fall in a year.
The improvement was built on slower rates of decline in Sydney and Melbourne house prices, according Mr Lawless.
He said while the major cities had "passed through the eye of the storm" of the property slump, it was premature to declare the markets were rebounding.
"The values are still decline. In Sydney, prices fell 0.5 per cent in in the month, which is not immaterial," Mr Lawless said.
"I think when we start to see values consistently rising again, that's when its fair to say that the market is recovering."
In a speech to the Queensland branch of the Economic Society of Australia in Brisbane last month, RBA governor Philip Lowe said without a cut in interest rates, unemployment across the country was unlikely to fall much further, inflation would remain low and workers would fail to enjoy sizeable wage increases.
Several analysts have predicted a rate cut at the bank's board meeting on Tuesday, and say there is also a chance of another cut in the month ahead.
On a $300,000 mortgage, and if fully passed on by commercial banks, a half percentage point cut in interest rates would save borrowers $86 on monthly repayments.