Australian property prices have plunged for the ninth month in a row. New data from property tracking firm CoreLogic reveals house prices across the nation have dropped 1.3 percent since the market peaked in September 2017. Over the last 12 months properties in Darwin have plunged the fastest, with homes in the Northern Territory's capital plunging 7.7 percent in value to a median value of $433,309. The country's second biggest loser was Sydney, which over the last year dropped 4.5 percent in value to record a current median property value of $870,554. READ MORE: Mysterious Victorian has three months to claim $55 million win REVEALED: The amount of cash needed to feel 'financially free' (AAP) (Hobart is not only the country's fastest-growing property market, but quickly becoming the most profitable, too. Image: AAP) The only other capital city to see a reduction in prices over the last year was Perth, where property prices have dropped 2.1 percent to record a median value of $461,149. Despite the falls, national dwelling values – which includes house and apartments combined – are still 32.4 percent higher than they were five years ago. CoreLogic's research director Tim Lawless said the turn of the market could mean some recent investors would find themselves with a mortgage worth more than the value of their home. "This highlights the wealth creation that many home owners have experienced over the recent growth phase, but also the fact that recent home buyers could be facing negative equity," Mr Lawless said. "Tighter finance conditions and less investment activity have been the primary drivers of weaker housing market conditions and we don't see either of these factors relaxing over the second half of 2018, despite APRA's 10 percent investment speed limit being lifted this month." Elsewhere across the country's capital cities most property owners saw a modest increase in value. In Melbourne home values lifted over the past year by 1 percent to $716,774, while in Brisbane they jumped 1.1 percent to record a median value of $495,242. In Adelaide property prices picked up 1.1 percent over the last 12 months to record a median value of $439,215 while Canberra saw a 2.3 percent increase for a median value of $587,867. The country's fastest-growing property market remains Hobart, which over 12 months has seen property prices skyrocket by 12.7 percent to record a median value of $436,899. "Despite the slippage in home values across Sydney, and to a lesser extent Melbourne, dwelling prices remain very high relative to other capital cities," he said. "With lenders now focusing more on overall debt to income ratios and household living expenses, housing markets where prices are high relative to incomes could see less activity as prospective buyers find their borrowing capacity reduced." Mr Lawless does not expect the Reserve Bank to change interest rates until late 2019, but thinks banks might take it upon themselves to lift rates in order to cover operating costs. "Smaller banks and non-banks have more exposure to international funding costs, which has seen some of these lenders start to lift their mortgage rates," he said. "Should widespread increases to the cost of debt occur, we would expect this could place additional downward pressure on housing market conditions." Capital city: 12-month change in value: Median value: Sydney - 4.5 percent $870,554 Melbourne + 1.0 percent $716,774 Brisbane + 1.1 percent $495,242 Adelaide + 1.1 percent $439,215 Perth - 2.1 percent $461,149 Hobart + 12.7 percent $436,899 Darwin - 7.7 percent $433,309 Canberra + 2.3 percent $587,867 National - 0.8 percent $556,384 *Includes both houses and apartments
House prices in Australia have fallen 1.3% since September's market peak and declines have extended to the past 12 months. Data from tracking firm CoreLogic showed prices over nine consecutive months slid 7.7% in Darwin, the worst performer, and 4.5% in Sydney, raising the possibility of homeowners in both cities facing negative equity. Hobart remained the country's fastest-growing market, with prices rising 12.7%.