Home prices in Melbourne and Sydney have started to come off the boil according to a new report by CoreLogic RP Data.
The Home Value Index for November showed that home prices fell by 1.5 per cent across Australia's capital cities over the month.
The survey found that prices fell in five out of eight capital cities in November.
Melbourne led the home price falls with prices dropping 3.5 per cent over the month, although prices were still up 11.8 per cent over the year.
The median dwelling price for the city was $602,500.
Sydney's home prices declined 1.4 per cent in November and rose 12.8 per cent annually with the median dwelling price at $810,000.
Prices fell in Hobart by 2.4 per cent over the month. In Darwin they were down 1.3 per cent and slipped by 0.5 per cent in Canberra over the month.
Prices rose by 0.6 per cent in Brisbane, 0.7 per cent in Adelaide and 0.3 per cent in Perth in November.
Over the year, home prices are down by 4.2 per cent in Darwin and 4.1 per cent in Perth because of weaker economies and a slowdown in population growth.
Hobart had the cheapest median dwelling price at $335,000.
CoreLogic RP Data head of research Tim Lawless said moves by the banks to clamp down on investor lending and tighter lending standards had dampened prices.
"What we are seeing as this market moves through this inflection point is that listing numbers are rising, buyers generally have more choice and they can take their time, they can make their decisions about buying their homes, which is a very high economic decision," he said.
Mr Lawless said annual home values had fallen significantly in Perth and Darwin.
"If you look on the year on year numbers, it's really a story about Perth and Darwin, that are the markets that are most advanced in the down phase now," he said.
"Values peaked in Perth in December last year and a little bit earlier than that in Darwin.
"Economic conditions have slowed down as they are very much linked back to the resources sector."
Mr Lawless said data released by the banking regulator, APRA, last month showed that mortgages taken out by an investor fell below 10 per cent for the first time since September last year.
APRA has set a 10 per cent annual growth limit on investor loans.
CoreLogic RP Data said the home price slowdown came after auction clearance rates had slipped to around 60 per cent since late October and average selling times and vendor discounting rates had risen from record lows.