House prices saw positive growth in Newcastle and Lake Macquarie in March, where there was an increase in the median house price of 0.6 per cent, up from 0.1 per cent last month.
The median house value in the region is now $822,693.
Unit values in Newcastle and Lake Macquarie are also up 0.6 per cent to hold a median of $644,125 according to the latest CoreLogic Home Value Index.
However, it is a different story in the Hunter Valley (excluding Newcastle) with house values recording a fall of 0.1 per cent with a median of $672,644 and units also dropping 0.5 per cent.
The median value of units in the Hunter Valley is now $498,516.
It comes as house values are continuing to stabilise across Australia with CoreLogic's national Home Value Index (HVI) recording the first month-on-month rise since April 2022.
Despite a fall in values last month, the Hunter Valley is ranked among the top 10 regional areas with the highest 12-month dwelling (houses and units) growth.
The Upper Hunter placed third in the top 10 with an annual change of 7.4 per cent in growth over the past year.
"The [Upper Hunter] region seems to have been largely insulated from the 10 rate hikes we have see so far, with housing values at a cyclical high in March," CoreLogic research director Tim Lawless said.
"The resilience follows a trend we are seeing more broadly across the country, where rural housing markets are generally holding their value or indeed rising in value as metro and coastal regions generally record a drop in values."
Overall, regional housing markets have mostly shown firmer housing conditions with the combined regionals index rising 0.2 per cent over the month, according to CoreLogic.
Mr Lawless said Newcastle and Lake Macquarie has recorded the fourth largest drop in values in regional areas overall behind Richmond Tweed (-21.3 per cent), Southern Highlands and Shoalhaven (-15.1 per cent) and Illawarra (-12.7 per cent) from their recent peak, with a 10.0 per cent decline since April last year.
"Although that may sound like a severe drop in less than a year, it comes after housing values surged almost 45 per cent through the recent upswing,' Mr Lawless said.
"Relative to the onset of COVID, housing values remain 30.3 per cent or roughly $246,000 higher."
Mr Lawless, put the rise in house values down to a combination of low advertised stock levels, extremely tight rental conditions and additional demand from overseas migration.
He said there was still a great deal of uncertainty about how sustainable the stabilisation in house values or return to growth will be.
"On one hand we have the fact that households are yet to feel the full impact of the rapid rate hiking cycle to-date, economic conditions are set to weaken and labour markets likely to loosen, albeit from an unemployment rate around generational lows," he said.
"On the other hand, available supply is generally very tight, migration is adding to housing demand amid the tightest rental market conditions on record."
Changes in Newcastle and Lake Macquarie home prices come as house values are continuing to stabilise across Australia with CoreLogic's national Home Value Index (HVI) recording the first month-on-month rise since April 2022.
The data released on Monday reveals national home values have risen 0.6 per cent in March, breaking a 10-month streak of falls.
