Home values were flat in January despite declines in the heavyweight markets of Sydney and Melbourne, analysis from property data firm CoreLogic revealed on Monday.

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The figures came as some surprise to CoreLogic research director Tim Lawless following a 0.1 percent decline nationally in December.

“They’re a little bit more resilient than what I was expecting, actually,” he told AAP.

“January is a month of reasonably low transactions, so a stable outcome probably is the expected outcome, given it’s seasonally quite a soft month for activity.

“But the trend leading into the end of last year was clearly one of losing momentum, and it looks like that may have been either interrupted or paused through January with a flat outcome nationally.”

Mr Lawless said the downward cycle in housing values appeared to be quite shallow and short-lived, given the prospect that lower interest rates around the corner would drive up borrowing capacity and therefore demand.

While building activity seems to be climbing out of a trough, a lag in new supply coming through the pipeline will continue to keep a floor under home values.

With consumer sentiment rising, buyers might be tempted to get in now to beat the rush, Mr Lawless said.

NAB executive for home ownership Andy Kerr said the increase in listings and decline in Melbourne and Sydney presented a “real opportunity” for those looking to enter the market.

“This is especially true in New South Wales, where we are seeing the biggest increase in first homebuyer loans,” he said.

“With inflation easing, there’s growing confidence that interest rate cuts are on the horizon. Historically, when rates start to fall, we see confidence and activity lift in the market.”

Melbourne and Sydney declined 0.6 percent and 0.4 percent over the month, respectively, while Brisbane, Perth and Adelaide continued to strengthen.

Another narrative emerging from the data is a second wind for regional markets.

After the initial pandemic jump in regional home values deflated, combined regional prices are once again outpacing combined capitals.

That was due to a return of the affordability advantage of regions, where prices are still coming off a lower base, as well as a rebound in internal migration trends away from cities, Mr Lawless said.

“But interestingly, when we look at the top performers across regional markets over the past 12 months, they aren’t your commutable markets – your Newcastles or Wollongongs or Gold Coast – they tend to be much more rural markets,” he said.

Townsville in North Queensland had experienced the strongest growth over the past 12 months, while Central Queensland towns of Gladstone and Rockhampton were close behind.

“To some extent, this seems to be driven by areas that have a predominance of either resource-related infrastructure activity or mining activity,” Mr Lawless said.

By Jacob SHTEYMAN, AAP