Property prices in regional Australia have taken a hit in the first month of spring.
Regional prices overall dropped 1.3 per cent in September, bringing the combined regional property price sitting at $589,364, according to the latest CoreLogic data.
However property prices overall in Australia have dropped less rapidly in September, which is traditionally one of the biggest months for buying and selling homes.
There was a national loss in value of 1.4 per cent according to CoreLogic's September Home Value Index, which is down from the 1.6 per cent loss that was sustained in August.
However according to CoreLogic's research director, Tim Lawless, it is probably too early to suggest the housing market has moved through the worst of the downturn.
"It's possible we have seen the initial shock of a rapid rise in interest rates pass through the market and most borrowers and prospective home buyers have now 'priced in' further rate hikes, " he said.
"However, if interest rates continue to rise as rapidly as they have since May, we could see the rate of decline in housing values accelerate once again."
The Reserve Bank of Australia is set to meet this Tuesday to set the official interest rate, with a rise widely expected.
Overall the price of homes in regional Australia have continued to trail behind losses in that of capital cities.
"We still don't see housing prices falling quite as fast in regional markets as the capital cities are but I think it's just a matter of time," Mr Lawless said.
"There's only a slight difference between the performance of the capitals which was down 1.4 per cent in September and the regional market down 1.3 per cent, so it does look like the performance gap is narrowing.
He said it was important to look at the recent losses in relation to the enormous growth that housing prices have gone through across Australia since the beginning of the pandemic in March 2020.
Housing prices in regional Australia have risen by 42 per cent in that time, while capital city prices overall have risen by 25.5 per cent.
Canberra meanwhile saw its home prices drop by 1.6 per cent in September and has now suffered a 4.4 per cent loss in prices since it saw a peak in June this year.
"It does look like the market is moving through a downturn," Mr Lawless said of the Canberra market.
In other major NSW regional centres there were also losses this month.
In the Illawarra, taking in Wollongong, prices dropped by 1.8 per cent, and are down by 5 per cent in the last quarter.
Newcastle and Lake Macquarie faced a drop in housing prices of 1.9 per cent, with the median home price now sitting at $856, 513.
The Central West, including Orange and Bathurst, property prices underwent the lowest drop in prices with home prices coming off just 0.4 per cent.
In regional Victoria, Warnambool and the south-west suffered the greatest losses in September with property prices dropping by 2.2 per cent. The median home price now sits at $537,344.
The median price for Bendigo meanwhile sits at $631.851 today after seeing a drop in value of 0.6 per cent in September and 3.2 per cent in the last quarter.
In Ballarat there was a drop of 1.1 per cent to bring the media home price to $637,708.
In the Hume region, which includes Albury and Wodonga, prices dropped by 1.2 per cent in September with the media price now at $588,340.
In Tasmania, Launceston and the north-east saw a drop of 1.1 per cent in home prices, with the median now sitting at $543,190.
