Formerly rampant south-east Australian real estate markets are losing steam, while mining states keep struggling, the latest home price index has confirmed.

Key points: Annual growth at 6.4 per cent lowest in 31 months

Annual growth at 6.4 per cent lowest in 31 months Forecast for growth to slow to 2-3 per cent nationally

Forecast for growth to slow to 2-3 per cent nationally One-fifth of Melbourne inner-city apartments selling at a loss

Core Logic RP Data's widely watched home value index showed a small 0.2 per cent rise in prices during March across the capital cities.

Over the past three months prices were up 1.6 per cent, with a 6.4 per cent rise over the past year.

That is the slowest annual property price growth in about two-and-a-half-years.

It is also well down from peak annual dwelling price growth of approximately 11 per cent around the middle of last year.

CoreLogic RP Data head of research Tim Lawless said annual property price growth is likely to slow further, but not "fall off a cliff".

"We will continue to see a moderation in the growth trends," he told ABC News Online.

"Our forecasts show that, by the end of 2016, we'll probably be looking at a capital city growth rate that's more around the pace of inflation, say 2-3 per cent."

Sydney listing surge, Melbourne unit 'cracks appearing'

Sydney has slowed down from breakneck annual growth approaching 20 per cent to a more modest 7.4 per cent, with further deceleration likely.

Australia's most populous city is suffering from a 19.2 per cent surge in the number of homes for sale, increasing choice for buyers, while listings are up 8.5 per cent nationally over the past year.

Mr Lawless said that may see Sydney home prices retreat a little before stabilising.

"By 2017 we're expecting the Sydney market will probably be tracking at around about the 1.5 to 2.5 per cent growth rate," he added.

Melbourne is now the fastest growing capital at 9.8 per cent annual growth, although its over-supplied apartment sector is showing strain.

"Nearly 20 per cent, or one-fifth, of all Melbourne inner-city apartments are reselling at a gross loss, meaning they're selling at a price lower than what the owners paid for them," Mr Lawless observed.

"So we are seeing a few cracks appearing in the inner-city apartment market, which I think we can safely attribute to the fact that we are seeing a lot of new housing, particularly high density housing supply, coming into the Melbourne inner-city."

Brisbane and Hobart continue to chug along with annual price growth of 4.5 and 4.8 per cent respectively.

Adelaide and Canberra posted more modest growth, while the resources-reliant cities of Darwin and Perth continued to go backwards, albeit at a modest pace.