Home buyers should get in before Christmas if they want to take advantage of the ACT's dropping property values, one real estate agent has advised.
Home values in the ACT dropped for the fourth month in a row in June, according to the latest Cotality Home Value Index.
House values dropped 1.2 per cent to a median $1.03 million, while apartments dropped 0.5 per cent to median $594,894.
Kris Hellier from Marq Property said it was one of the hardest markets to navigate in his 12 years in the industry.
"It's hard for the seller to realise that only six months ago we were potentially 10, if not 15 per cent higher on certain price brackets, and from the buyer's point of view, to commit without the worry that it's going to drop another five or 10 per cent," Mr Hellier said.
Auction clearance rates are down, and days on the market are up as buyers hold off in an attempt to buy at the lowest possible price.
However, Mr Hellier warned buyers not to drag their feet on a property they loved, and predicted the bottom of the cycle would come sometime between the end of this year and the start of 2027, if the Reserve Bank held off on any further rate rises.
He recommended committing to a purchase before Christmas to maximise savings.
"It doesn't matter if you're buying a one-bedroom apartment, two-bedroom townhouse, three-bedroom family home, up to the luxury market," Mr Hellier said.
"I'd be trying to buy something before the end of the year, because I don't think this is going to last forever."
Mr Hellier said sellers should remember the market was all relative, and upsizers who sold for less than they would have a year ago would also be buying for less.
"If you're getting a little bit less for your home, you're paying a little less on the other side," he said.
Downsizers could also benefit from selling and buying low, if their current properties were not at the high end of the market, which was dropping in price faster than the lower end.
Investors should sit on their properties for another year or two if possible, until prices went up again.
Mr Hellier said there were still plenty of buyers in the market, but they were able to be picky, and would prefer homes that were ready to move into.
"If you're not presented well, marketed correctly and priced accordingly, you're not selling," Mr Hellier said.
"My rule of thumb is, whoever does the work to the property financially benefits. If the owner is prepared to invest into the presentation of their home before sale, the buyers will respond to that."
Cotality head of research Gerard Burg said the downturn was becoming "entrenched" and would likely continue at least for the next few months.
Recent tax reforms designed to encourage first home buyers into the market were a factor in the dropping house prices, but affordability continued to be an issue, and consecutive cash rate rises meant buyers needed a higher income to buy despite the falling market, Mr Burg said.
"The impact of rate changes aren't always immediate. They can take a bit of time to process and understand for potential buyers, so we're still feeling that building effect over the last couple of months, even though rates have been on hold," he said.
Apartments, which have historically performed badly in the ACT, dropped at a lower rate than houses in June, possibly because they were the only options for first home buyers looking to stay under the cap for the 5 per cent deposit scheme, Mr Burg said.
Mr Burg said it was possible people would turn back to houses as they dropped in value.
"Most Australians still have a preference for a stand-alone house," he said.
"It is perhaps slowly evolving but in the near term, if people can afford the house, they're likely to continue to favour it. If it's not an option, they will settle, in the short term, for a unit."
