Capital city home prices continued their downward slide in March, posting their worst slump in at least 12 years as the property market showed more signs of sagging demand. Brisbane and Perth fell the most.

National city home values slipped 0.2 per cent, seasonally adjusted, in March, following a downwardly revised 0.5 per cent fall in February, according to property research group RP Data-Rismark. The decline brought the national city median dwelling price to $455,000 in March.

In the March quarter alone, national city homes prices sank 2.1 per cent, the group said. That's the biggest decline since RP Data-Rismark's data series began in the June quarter of 1999.

"Basically there are more people putting their properties on the market than there are people buying them,” RP Data research director Tim Lawless told BusinessDay. “Until we start to see that effective supply being absorbed, I really don’t think we’ll see any upward price pressures.”