Australian housing prices have continued to fall, but at a slightly slower pace in the last four months, according to property analysts CoreLogic.

Key points: Hobart remains the strongest property market, with prices up 6pc in the past year

Hobart remains the strongest property market, with prices up 6pc in the past year Darwin has the lowest median dwelling price at $400,316

Darwin has the lowest median dwelling price at $400,316 Sydney median prices are the highest — $880,594 (houses) and $687,327 (apartments)

The median price across Australia fell 0.6 per cent in March, which CoreLogic noted was the second-smallest monthly drop since October 2018 when values fell 0.5 per cent.

However, the prospect of Labor winning the federal election, which is expected to happen in May, and imposing significant changes to tax laws could exert more "downward pressure" on the market.

"No doubt, some prospective buyers and sellers are delaying their housing decisions until after the election, however there is no guarantee that certainty will improve post election," said CoreLogic's head of research Tim Lawless.

He said the impact of restricting negative gearing and halving the capital gains tax concession from January 2020 is "largely unknown".

Sydney values have fallen 13.9 per cent since their peak. ( Supplied: CoreLogic )

More 'widespread' falls

"While the pace of falls has slowed in March, the scope of the downturn has become more geographically widespread," Mr Lawless said.

The sharpest falls in the value of dwellings — which include houses and apartments — were seen in Darwin (-3.9pc), Melbourne (-3.4pc), Sydney (-3.2pc) and Perth (-2.9pc) over the past quarter.

Brisbane (-1.1pc) and Adelaide (-0.5pc) values recorded smaller declines, while Canberra was flat.

Hobart was the only capital city which saw average dwelling prices rise in the last three months (up 1.2 per cent) — and are at record-highs of $464,168.

On a national basis, the average house price fell 2.4 per cent to $540,676, and apartment prices dropped 2.2 per cent to $484,552 during that period.

CoreLogic observed that markets which experienced their peaks earlier had experienced sharper downturns.

Darwin and Perth property prices skyrocketed during the mining boom, but peaked in 2014. Since then dwelling values in both capitals have fallen by 27.5 per cent and 18.1 per cent respectively.

"The silver lining here is that housing is now very affordable and first home buyers are proportionally much more active relative to other areas of the country," Mr Lawless said.

Silver lining in rate cuts

Mr Lawless said Australia's slowing economy — exacerbated by the property downturn — makes it "increasingly likely" that the Reserve Bank will cut interest rates twice after the federal election.

Australia's cash rate has already been kept at the record low 1.5 per cent for more than two years. Two rate cuts would take the official rate down to a new low (1 per cent).

"While any cuts to the cash rate may not be passed on in full, a lower cost of debt will provide some positive stimulus for the housing market," he said.

"As dwelling prices trend lower or level out, household incomes are edging home and mortgage rates remain around the lowest level since the 1960s.

"First home buyers are clearly taking advantage of the improved levels of affordability and less competition in the market."