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CoreLogic's latest Home Value Index (HVI) released on Monday showed the median dwelling value across the country rose 0.3% in February, effectively reversing the 0.3% quarterly decline to January.

The monthly lift has brought the national median dwelling price to $815,912 as of 28 February.

However, compared to the previous quarter, the February result was down 0.1%.

Big cities Sydney and Melbourne rebounded after declining in the month prior, with the Victorian capital posting the largest monthly gain at 0.4% (alongside Hobart at 0.4%) to reach the current median value of $772,561.

Sydney prices lifted 0.3% in February to $1.186 million, though still down from $1.193 million in the previous month.

As in previous indices, mid-sized capitals Brisbane, Adelaide, and Perth saw monthly gains, though at 0.2% and 0.3%, growth in these previously hot markets has slowed, particularly in Perth.

However, regional areas in their states continue to drive growth - WA rose 1%, SA was up 0.6%, and QLD up 0.5%.

The Real Estate Institute of Queensland (REIQ) in its December quarter report confirmed that regional areas are powering QLD's property market.

"What is evident from the data is that the growing local economies of areas such as Ipswich, Moreton Bay, Logan, Toowoomba, Townsville, Rockhampton, Gladstone, and Mckay among other regional areas are sustaining strong housing markets," REIQ CEO Antonia Mercorella said.

Ms Mercorella said Queensland property had demonstrated unwavering resilience due to strong housing market fundamentals, particularly on the demand side.

"Queensland's population growth of 2.3% outdid the nation's 2.1% in the year to last June, particularly our strong net interstate migration of almost 30,000 people - the highest population boost among the states, and more than triple Western Australia's gains," she said

In rolling quarterly growth trends, Adelaide and Brisbane maintained their leads, up 1.2% and 0.9%, respectively.

Canberra was also up 0.2%, while Darwin was the only capital city where prices went down (-0.1%).

Cash rate cut fuels market optimism

CoreLogic research director Tim Lawless attributed last month's gains to improved sentiment following the RBA's decision to cut the cash rate by 25 basis points to 4.10%.

"Expectations of lower interest rates, which solidified in February, look to be flowing through to improved buyer sentiment," Mr Lawless said.

He also noted auction clearance rates had improved, returning to long-term average levels across major auction markets.

At the same time, the flow of new 'for sale' listings eased across the combined capitals over the four weeks to 23 February, tracking 4.7% lower than a year ago and 1.5% below the previous five-year average.

"The reduced flow of fresh stock to market could be supporting some upward pressure on prices, especially if buyers are becoming more active amid higher sentiment and lower rates," Mr Lawless noted.

Premium homes driving Sydney and Melbourne gains

After failing in previous months, high-value homes led the price gains in Sydney and Melbourne.

CoreLogic's data confirmed upper-quartile house values saw the strongest monthly growth, verifying earlier research that premium housing markets in Sydney and Melbourne "have historically been the most sensitive to rate cuts".

In her analysis of the impact of rate cuts across Australia's property markets, CoreLogic head of research Eliza Owen concluded that houses in "relatively expensive markets" tend to show the strongest reaction to a reduction in the cash rate.

In Leichardt, for instance, a 1% rate cut has historically led to a 19% increase in house values.

Similarly, premium units notably have had the biggest response to rate falls - that or because they have high investment ownership or both.

"Overall, the markets that stand to gain the most from a cash rate cut could be those that have demonstrated more sensitivity to changes in financial and interest rate settings in the past," Ms Owen said.

"These are typically the higher-end markets of Sydney and Melbourne, many of which have also seen a substantial reduction in home values amid rate rises."

Mixed impact in other capital cities

Expensive properties in Brisbane also showed a strong response to a reduction in interest rates, based on the analysis of historical data.

This relationship, however, is far less pronounced in markets across Adelaide and Perth.

In Perth and Western Australia, boom-and-bust cycles in the mining sector have historically had a greater impact on housing values than interest rate changes.

Meanwhile, South Australian property values saw slow and steady growth throughout the 2010s before a sharp pandemic-era surge.

"[This is] a reminder that housing markets respond to a broad range of factors beyond changes in the cost of debt," Ms Owen said.

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