Canberra house values fell 2 per cent in August as national property values recorded the largest monthly decline since 1983.
CoreLogic's latest Home Value Index, released today, shows Canberra's house value decline has accelerated, with values down 3 per cent over the three months to September.
The median Canberra house value is now $1,033,377.
The decline in Canberra unit values was more subdued, falling 0.9 per cent in August and 0.8 per cent for the quarter. It takes the median unit value to $615,560.
Canberra dwelling values - combining houses and units - have fallen 2.9 per cent since they peaked in June.
CoreLogic research director Tim Lawless told ACM it was likely Canberra's property downturn would accelerate further from here.
"Over the past five or even 10 years, [Canberra has] been one of the strongest markets so affordability has become a little bit more challenging," he said.
Mr Lawless said units in the territory are yet to experience the same downturn as houses.
"We're definitely seeing that more affordable units sector across Canberra being a little bit more resilient," he said.
"... the more affordable end of the marketplace and the more affordable styles of housing seem to be a little bit more insulated compared to detached housing and that upper-premium end of the marketplace is still recording a larger fall as well."
Almost all capitals now in a downturn
Every capital city except Darwin is now in a housing downturn, the latest report revealed.
The national home value index declined for a fourth consecutive month in August, with dwelling values down 1.6 per cent for the month.
It marked the largest month-on-month decline since 1983, according to the CoreLogic report.
Sydney led the downswing with dwelling values dropping 2.3 per cent, followed by Brisbane (down 1.8 per cent), Canberra and Hobart (both down 1.7 per cent).
Darwin bucked the trend with 0.9 per cent growth in dwelling values.
Sellers adjust to a cooling market
Simon Ochsenbein said the downswing of property prices was something he took note of when getting ready to sell his home in Fisher, in the ACT.
Having noticed a drop in auction clearance rates and the first signs of property value declines in other capitals, Mr Ochsenbein was eager to sell sooner rather than later.
"I suspected it was a good time to sell and that's why I wanted to sell as quickly as possible," he said.
Mr Ochsenbein took his agent's advice to update the house before listing it in April, which included replacing carpets, laying new turf and upgrading the kitchen.
All up it set him back about $50,000.
"We did a fair bit of work, painted it inside and out - that was about half the costs - and we had double glazed windows that needed to be replaced," he said.
The property, which he had purchased eight years ago for $720,000, sold prior to auction for $1,525,000.
Mr Ochsenbein believes it would have sold for far less if he hadn't invested in the renovations.
"We did all that work and I think it was worth it. I think we definitely got our money back," he said.
Steve Thomas of Edge Real Estate, who sold Mr Ochsenbein's house, said the market had clearly shifted since last year.
"Competing for buyers is where we're at the moment. Whereas last year, that wasn't the case - it was absolutely a seller's market," Mr Thomas said.
It's never been more important to understand what buyers want and prepare your home accordingly, said Mr Thomas, who interviews successful buyers on what they looked for in a home.
"It may not be necessary to fully renovate your kitchen or bathroom. It's very much more about colour palettes, green grasses, believe it or not even a particular mulch that we use keeps coming up and up again in the buyer interviews," he said.
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