Australia's housing market has taken another big step down with Sydney, Melbourne and Perth continuing to lead the declines.

Key points: Nationally, home prices fell 0.7 per cent in November and are down 4.2 per cent since the peak in October 2017

Nationally, home prices fell 0.7 per cent in November and are down 4.2 per cent since the peak in October 2017 Sydney prices dropped 1.4 per cent last month and are now down 9.5 per cent from their July 2017 peak

Sydney prices dropped 1.4 per cent last month and are now down 9.5 per cent from their July 2017 peak Hobart, Canberra, Adelaide and Brisbane all posted price rises over the past year, but only Hobart had large increases

CoreLogic's monthly figures show prices fell 0.7 per cent nationally last month, with a 0.9 per cent slide in the capital cities and a 0.1 per cent fall in the regions.

Sydney prices dropped 1.4 per cent in November, bringing the city's total peak-to-trough decline to 9.5 per cent — almost on par with the previous record fall of 9.6 per cent between 1989 and 1991, when interest rates were in the high teens, unemployment was rising towards double digits and Australia was entering recession.

In contrast, Australian interest rates are at record lows, unemployment is currently about 5 per cent and economic growth is around, or even slightly above, average at 3.4 per cent over the year to June 30.

Melbourne's property price falls have been less precipitous so far, with values down 1 per cent last month, and 5.8 per cent peak to trough.

However, Melbourne's decline started in November 2017, four months after Sydney's.

Eight of the 10 worst performing regions in Australia over the past year were in Sydney, with Ryde the Hills/Hawkesbury district, Sutherland and Parramatta recording declines above 10 per cent.

The other two worst performing areas were in Melbourne, with the inner-east down nearly 12 per cent and inner-south falling 9.4 per cent.

CoreLogic said the two cities combined account for about 55 per cent of the nation's total housing value and are driving the national falls.

'Turnaround reliant on credit becoming available'

CoreLogic's head of research Tim Lawless told ABC News there are no signs that either market is about to bottom.

"It does look like the rate of decline is starting to gather a little bit of momentum now, particularly as we start to see owner-occupiers becoming less active in the market, because previously the downturn has very much been fuelled by tighter credit conditions for investors," he said.

"Our view is that values will continue to trend lower through 2019.

"I think any turnaround in the housing market is very much reliant on credit becoming a bit more available and, potentially, when we do start to see credit loosening up a little bit, that might be a sign that potentially monetary policy [interest rates] might be adjusted upwards as well."

Mr Lawless said, adding to those downward pressures, is the increasing likelihood of a Labor government enacting changings to restrict negative gearing and reduce the capital gains tax discount.

"I think a decline of around about 10 per cent on a national basis doesn't look too extreme at the moment," he said.

"Sydney, considering values are already down 9.5 per cent from their peak, we could see a decline of around 15 per cent in that market.

"Melbourne dwelling values are down a little bit less than Sydney because they peaked a little bit later, but Melbourne dwelling values are already down by about 5.5 per cent since they peaked out and we would expect that values in Melbourne would probably decline by at least 10 per cent as well."

The news is good for renters, but bad for landlords, with rents up an average of just 0.4 per cent over the past year in the capital cities and 2 per cent in the regions.

"That's really reflective of the fact that there has been a lot of new supply coming onto rental markets on the back of a lot of investment activity up until recently, as well as a downturn in demand," he said.

"That downturn in demand has been fuelled by a lot of first home buyers becoming active chasing stamp duty concessions in New South Wales and Victoria, as well as some easing in migration rates."