The median house value for Canberra is $961,636, Corelogic's monthly home value index has shown.

This is a decline of more than $100,000 from a peak of just over $1.07 million in June.

While house values declined in Canberra, unit values rounded out the year 2.6 per cent higher, despite a 0.5 per cent drop in December.

The median value for a unit is $599,937.

Canberra's combined dwelling value - both units and houses - of $846,993 is 3.3 per cent lower than this time last year and 7.6 per cent lower than the June 2022 peak of $937,568.

The national dwelling value dropped 5.3 per cent over 2022.

Corelogic research director Tim Lawless said it had been "a year of contrasts" as values rose during the first part of the year but started to decline as interest rates increased.

The cash rate rose to 3.10 per cent last year, following a historical low of 0.10 per cent. The Corelogic report said at least one more increase of 25 basis points was all but certain.

Advertised supply levels have also fallen, the report saying over the four weeks to Christmas day that supply was 19 per cent below the previous five-year average.

Despite low stock levels, home sales have also declined and are 9.2 per cent below the previous five-year average.

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Mr Lawless said sellers were reluctant to test the market through the downturn, meaning the spring selling season was not as strong as previous years.

He said advertised supply levels would be a key trend to watch over the coming months.

"The balance between the flow of new listings and number of home sales will be a key trend to watch through early 2023. We typically see a seasonal surge in the number of new listings added to the market from early February through to Easter," Mr Lawless said.

"If this seasonal pattern plays out over the coming months against the back drop of higher interest rates and a further drop in buying activity, we could see housing prices responding negatively as advertised supply levels rise and vendors are forced to discount their prices more substantially."

The report has predicted house values could follow a similar trend to last year.

"Similar to 2022, the 2023 calendar year could be one of contrasts, characterised by further falls in home values through the early months, followed by a stabilisation in housing prices after interest rates find a peak," the report said.

"Initially, housing risks remain skewed to the downside."

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