The mood among housing market professionals soured ahead of the election, but confidence about the coming couple of years has picked up.
National Australia Bank said its Residential Property Index fell further below its long-run average in the June quarter.
Aside from the final quarter of 2015, it was the lowest ebb for the index since late 2012.
The share of sales of new homes to foreign buyers in new Australian housing markets fell for the third quarter in a row to 10.4 per cent, while their share of established home sales was steady at 7.2 per cent.
But the survey's measures of confidence about the likely state of the market one and two years ahead had picked up.
The survey found expectation for capital gains were strongest for Victoria and Queensland, NAB Chief Economist Alan Oster said.
"It's still a mixed picture across Australia, with house price expectations for the next 12 months holding up well in the eastern states whilst staying flat in SA/NT and continuing to fall sharply in WA."
