Housing price growth is being undermined by more than just the decision of the big banks to slug homebuyers with higher interest rates.
Annual growth in Australia's capital city housing prices slowed to 10.1 per cent in October, from 11.0 per cent in September.
With only modest gains in Sydney and Melbourne, and falls in Brisbane and Perth, monthly growth came in at just 0.2 per cent, according to CoreLogic RP Data on Monday.
Housing prices have a seasonal pattern so a comparison with October 2014, when prices posted a much stronger rise of 1.0 per cent, shows the housing market has lost steam.
But CoreLogic RP Data head of research Tim Lawless said a range of factors, not just the recent mortgage rate rises by the major banks, was contributing to the loss of momentum.
"We are also seeing approximately a 30 per cent premium on investment-related mortgage rates, tighter lending standards and borrowers generally requiring a larger deposit," he said.
As well, rental yields were at record lows and there were affordability constraints, especially in Sydney where the median price of a home unit was above the median house price in all other capital cities.
"Additionally, new housing supply is moving through record levels which should help to ease the upwards trajectory of home values," Mr Lawless said.
DWELLING VALUE CHANGES
Sydney: Month +0.3pct, Year +15.6pct
Melbourne: Month +0.6pct, Year +12.8pct
Brisbane: Month -0.2pct, Year +3.8pct
Adelaide: Month +1.5pct, Year +2.3pct
Perth: Month -2.8pct, Year -3.6pct
Hobart: Month +1.4pct, Year +3.8pct
Darwin: Month -0.1pct, Year -3.7pct
Canberra: Month +1.5pct, Year +4.5pct
All capitals: Month +0.2pct, Year +10.1pct
Other areas* +0.8pct, Year +3.5pct
*Data to September
Source: CoreLogic RP Data Home Value Index
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