New data collated by CoreLogic shows that property prices across the country's capital cities fell by an average of 1.1 per cent during May, indicating that the boom the housing market has been experiencing in recent months is beginning to slow down.
The most significant declines were recorded in Hobart and Darwin, where house prices fell by 4.8 per cent and 3.5 per cent respectively over the course of the month.
However, much of the slowdown in property price growth was seen in the larger cities, with Melbourne experiencing an average decrease of 1.7 per cent and asking prices in Sydney falling by 1.3 per cent. In Perth and Canberra, falls of 0.4 per cent and 0.1 per cent were recorded respectively.
Overall, drops have been reported in four of Australia's eight capitals over the past three months.
Although some price growth was recorded in Brisbane (0.3 per cent) and Adelaide (0.8 per cent), on the whole costs declined, with property values rising by just 0.4 per cent on average throughout May.
Many experts believe that this latest data signals the start of a decline in the whole of Australia's property market, but if this is the case, now could be the ideal time for first-time buyers to invest in a new house, while it may also be a good time for overseas investors to take advantage of the landscape.
Tim Lawless, head of research at CoreLogic, commented: "The jury is still out on whether the housing market has peaked, however, if it hasn't, a peak could be just around the corner.
"The housing market remains as diverse as ever and the flow of data over coming months will be critical to get a better understanding of the trends."