A DROP in house values has begun to ease in Newcastle and Lake Macquarie, according to the latest Home Value Index data from CoreLogic.
In November, the region's house values recorded a fall of 0.4 per cent, down from a drop of 1.8 per cent in the previous month.
Although values are continuing to trend lower nationally - November marks the seventh consecutive month of decline - the rate of decline has been consistently moderating since the national index dropped by 1.6 per cent in August.
The median house price in Newcastle and Lake Macquarie is now $835,569.
In comparison, unit values in the region are continuing to fare better after recording an increase of 0.8 per cent during November with a median price of $660,412.
In the Hunter Valley (excluding Newcastle), house values fell 0.8 per cent with a median price of $690,634 while units recorded growth of 1.3 per cent with a median value of $516,141.
CoreLogic's research director Tim Lawless said the easing in the rate of decline is most pronounced in Sydney and Melbourne but is also evident across most regional markets.
"In Newcastle, we probably have seen a structural change in the underlying demand profile, where more people are willing to place themselves in commutable regional markets like Newcastle," Mr Lawless said.
"Maybe that has something to do with [the moderation] as well.
"We know that interstate migration out of NSW is starting to slow down as well which means more people are choosing not to leave the state and more people are arriving as well.
"That may be another factor that is helping to support demand."
