Melbourne overtook Sydney as Australia's weakest housing market, with house prices falling in two major Australian cities in September.
Last month was Australia's 12th consecutive month of declines, while Melbourne led the decline by 0.9%.
Sydney, Perth, Darwin and Adelaide all fell for the first time in the spring, while Brisbane, Canberra and Hobart rose slightly.
Home prices across the country fell 2.7 percent, capital cities fell 3.3 percent, while small cities and rural areas rose 1.2 percent over the past 12 months, according to CoreLogic data.
Sydney was the worst performing city in the past year, down 6.1 percent, followed by Darwin 3.7 percent, Melbourne 3.4 percent and Perth 2.8 percent.
Brisbane, Adelaide and Canberra saw gains equal to or lower than inflation, with only Hobart up 9.3 percent.
Markets outside the capital city also fell, with new states outside the city down 1.3 percent, Victoria 0.2 percent, Kunzhou 0.6 percent, South Australia 0.3 percent and Western Australia 3.4 percent in the three months ending September 30.
Tim Lawless, director of research at CoreLogic, said the decline "gathered some momentum in the spring."
"part of the reason is credit tightening, but also because there are more people selling homes in the spring."
"so we saw an increase in advertising and far fewer buyers."
The auction rate in Sydney was less than 50% over the long weekend, compared with more than half in Melbourne.
Lawless said he expects the turnover rate to continue to fall to next year.
