The prospect of higher for longer interest rates has sapped some heat from the property market, as growth in house prices slows in the winter months.
National home values rose half a per cent over the four weeks to July 18, according to CoreLogic's daily index, down from a 0.7 per cent increase logged in the same period last month.
The property data company's economist, Kaytlin Ezzy, said easing growth likely stemmed from stubbornly low consumer sentiment knocked around by still-elevated inflation.
A rise in advertised stock levels in some markets was also playing a role, she said.
"With many household budgets already stretched by the high cost of living and increased debt-servicing costs, it's likely some potential buyers are holding off and delaying purchasing decisions until the outlook for interest rates becomes clearer," she said.
This had likely reduced demand and taken some heat out of the real estate market, the economist explained.
Two stronger-than-expected monthly inflation readouts prompted some economists to push out their timelines for interest rate cuts.
Much is riding on June quarter inflation data out later in the month, with warnings a disappointingly strong result could even put another interest rate hike back in play at the Reserve Bank of Australia's August meeting.
The slowdown in dwelling values was most pronounced across houses, with units less sensitive to market conditions.
Compared to mid-sized capitals, which have been growing strongly for some time, prices in Sydney were cooling faster.
"Affordability continues to be an important determiner for the pace of growth, with the more affordable end of the market showing more resilience to the elevated interest rate environment," Ms Ezzy said.
Brisbane, Adelaide and Perth did see the pace of home price growth tick a little lower through early July, hinting at the first signs of easing demand.
Renters are also seeing light at the end of the tunnel, with the number of vacant rental properties rising nationwide.
Vacancy rates are now sitting at 1.3 per cent, according to SQM Research, with capital city rents lifting just 0.1 per cent in the 30 days until July 12.
Research director at the firm, Louis Christopher, said renters would still have a while to wait for material softening in the market but the "the days of 10-20 per cent plus annual rental increases have come to an end".
