The Home Value Index for November by CoreLogic RP data showed that the home prices in five out of eight cities in Australia have fallen by 1.5 per cent. Home prices in Melbourne fell to the lowest with a 3.5 per cent drop while Sydney home prices recorded a 1.4 per cent fall.

Despite the loss in the home prices, the median prices for Melbourne home prices rose by 11.8 per cent and Sydney’s by 12.8 per cent over the year.

According to the survey, Hobart experienced a fall of 2.4 per cent, whereas Darwin home prices plummeted by 1.3 per cent. Houses in Canberra has become 0.5 per cent cheaper, as per the data. The median dwelling price in Hobart is so far the cheapest, at $335,000.

On the other hand, the report suggested that the home prices in Perth, Adelaide and Brisbane have risen over the month. The Home Value Index showed a rise by 0.3 per cent in Perth, 0.6 percent in Brisbane and 0.7 per cent in Adelaide.

The weakening house prices came about after the banks cracked down on investor lending and set tighter lending standards, according to CoreLogic RP Data head of research Tim Lawless.

"What we are seeing as this market moves through this inflection point is that listing numbers are rising, buyers generally have more choice and they can take their time, they can make their decisions about buying their homes, which is a very high economic decision," he was quoted by ABC as saying.

Lawless also pointed out that Perth and Darwin have recorded a significant fall in the house prices over the year.

"Values peaked in Perth in December last year and a little bit earlier than that in Darwin,” he said. "Economic conditions have slowed down as they are very much linked back to the resources sector."

CHANGES IN DWELLING VALUE

* Sydney: month -1.4 per cent, year +12.8 per cent

* Melbourne: month -3.5 per cent , year +11.8 per cent

* Brisbane: month +0.6 per cent, year +4 per cent

* Adelaide: month +0.7 per cent, year +3.3 per cent

* Perth: month +0.3 per cent, year -4.1 per cent

* Hobart: month -2.4 per cent, year +1.1 per cent

* Darwin: month -1.3 per cent, year -4.2 per cent

* Canberra: month -0.5 per cent, year +4.5 per cent

* All capitals: Month -1.5 per cent, year +8.7 per cent

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