Property data firm CoreLogic recorded a 0.3 per cent lift in the national home value index, the same result as the three months prior but with falls recorded across four capital cities.
Sydney joined that list for the first time in nearly two years, alongside Canberra, Darwin and Melbourne.
CoreLogic's research director Tim Lawless said Sydney would likely follow a similar trajectory to Melbourne, which has been in a shallow correction as listing numbers have improved.
"Total listings are now 13.2 per cent above the previous five-year average in Sydney and 13 per cent higher in Melbourne," he said.
Adelaide recorded a 1.1 per cent gain on CoreLogic's national home value index. (Bianca De Marchi/AAP PHOTOS)
Buyers hitting an affordability ceiling was also weighing on price growth, with Sydney experiencing a "spectacular growth phase" since the pandemic, he told AAP.
Even Adelaide, Perth and Brisbane - which have been consistently high performers, and helped push the national index higher in September - were losing momentum.
Adelaide's 1.1 per cent gain was the lowest monthly rise since June.
Brisbane's 0.7 per cent lift was the weakest improvement since July.
A dip into the negative across the nationwide index was possible but Mr Lawless said the prospect of interest rate cuts in early-2025 should keep a floor under prices.
The strong labour market and subdued outlook for new housing supply would further support property values.
The Reserve Bank is expected to keep interest rates on hold on Melbourne Cup Day. (Joel Carrett/AAP PHOTOS)
Jarden chief economist Micaela Fuchila said a slower pace of growth in home prices would be welcomed by a central bank looking for evidence of a slowing economy.
The RBA board is broadly expected to leave interest rates on hold at its meeting on Tuesday, with underlying price pressures and a strong labour market cited as reasons to exercise caution despite headline inflation falling back within target.
Ms Fuchila also highlighted a slowing pace of annual market rental growth as tracked by CoreLogic, with the 5.8 per cent gain the smallest annual rise since April 2021.
She said this was a positive for inflation as rent accounts for over six per cent of the basket of goods and services tracked by the Australian Bureau of Statistics in the consumer price index.Â
With the market still relatively tight and keeping upwards pressure on rental yields, property investors have been leading the upswing in mortgage activity.
Investor loans were up 29.5 per cent over the year, Friday's update from the Australian Bureau of Statistics shows.
But for the first time since February, lending by investors fell on a monthly basis, dipping one per cent to $11.57 billion.
Owner-occupier lending held steady at $18.64 billion, with first home buyer loans down 3.3 per cent, to $5.2 billion.
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