Melbourne property prices fell 0.5 per cent over the past three months, a further sign that the tide is turning, new data shows.

Despite registering strong annual growth of 11.8 per cent, home prices dipped 3.5 per cent over November, according to the CoreLogic RP Data Home Value Index released on Tuesday.

It comes as the city’s auction clearance rate over spring dipped to its lowest level in three years on the back of a record volume of listings.

Over the three months to November unit prices cooled faster at 0.9 per cent to a median of $503,500, compared with house prices which slid 0.4 per cent to a median of $675,000.

Slower housing market conditions became evident earlier in the year after lenders increased mortgage rates independently of the cash rate, CoreLogic RP Data head of research Tim Lawless said.

“Tighter mortgage servicing criteria across the board and affordability constraints in the Sydney and Melbourne markets are also having an impact on market demand,” he said.

The value of outstanding loans to property investors rose 9.7 per cent in the year to October – the slowest annual expansion since September last year. It was the first time this year that housing investor credit grew less than 10 per cent compared to the year earlier.

Woodards Carnegie director Ruth Roberts confirmed the frenzy had gone out of the market, but said there were still consistently three or four bidders at most auctions.

Buyers were also more more discerning, she said, with A-grade properties achieving better prices.

“The market has just settled, but there are still some really strong results,” she said.

“That [strong] rise that we’ve been seeing has slowed, maybe that’s why there’s been some pass-ins. But you’ll see that properties are usually selling a couple of days after.”

Domain Group’s monthly auction report shows November’s clearance rate of 66.5 per cent was down on October’s 69 per cent.

However, the result was still higher than the 65.9 per cent recorded over November last year.

Domain Group senior economist Andrew Wilson attributed the moderation in clearance rates to record numbers of late-spring auctions.

“The usual negative late-year seasonal impacts however have clearly been exacerbated by recent increases in mortgage rates that have generally impacted market confidence,” he said.

Melbourne’s median auction price increased 1.1 per cent over November to $801,000, and remains 8.2 per cent higher than the median recorded over November last year.