CoreLogic head of research Tim Lawless said dwelling values held firm over the month following a consistent trend towards smaller month-on-month declines through the first half of the year.

“The stabilisation in housing values is becoming more broadly based, with five of the eight capital cities recording a subtle rise in values over the month, while the regional areas of South Australia, Tasmania and Northern Territory also recorded a lift in housing values in July,” said Mr Lawless.

The only capital cities that saw a decline were Adelaide, Perth and Canberra. The best performing capital cities are Hobart and Melbourne, which both rose 0.1 per cent in the three months to July.

Mr Lawless said a number of factors have supported the turnaround in housing conditions, however lower mortgage rates, improved access to credit, a boost in housing market confidence post the federal election and recent tax cuts are likely the primary drivers.

“Other factors include improvements in housing affordability and a reduction in advertised supply levels. All of which is creating a stronger selling position for vendors,” he said.

“The improved housing market conditions have lifted the annual rate of change to -6.4 per cent nationally, with the annual rate of decline across the combined capitals index easing from a recent low of -8.4 per cent to -7.3 per cent, while the combined regional markets are recording an annual rate of decline of -3.0 per cent.”