National property prices rose 0.5 per cent in July, marking the 18th straight month of growth.

Figures published on Thursday by CoreLogic revealed the national home value index is now up 13.5 per cent since November, when the market began consistently breaking records.

But while growth continues, the analysis firm warned momentum across the market is weakening as the effects of high interest rates and worsening affordability weigh on buyers.

The trend is already evident in three capitals recording a decline in values in the past quarter, with Melbourne down 0.9 per cent, Hobart falling 0.8 per cent and Darwin down 0.3 per cent.

Sydney, meanwhile, has seen growth slow to 1.1 per cent over the quarter, CoreLogic said.

The market continues to be driven forward by mid-sized capitals, including Perth, where prices have risen 6.2 per cent over the quarter, and Adelaide, where growth accelerated to 5 per cent.

Brisbane, which recently overtook Melbourne for median values, rose 3.8 per cent quarterly.

CoreLogic research director Tim Lawless said that supply in these capitals is a key factor.

“The number of homes for sale in Brisbane, Adelaide and Perth is more than 30 per cent below average for this time of the year,” Lawless explained on Thursday.

“Weaker markets like Melbourne and Hobart are recording advertised supply well above average levels.”

Demand is also shifting across the market as high interest rates and worsening affordability constrains buyers, with CoreLogic explaining that demand is moving towards lower price points.

Lower-quartile dwelling values across capital cities are now up 3.3 per cent over the past three months, compared to a smaller 0.8 per cent rise among upper-quartile dwellings.

Lawless added that units are now outperforming houses in terms of price growth heading into the second half of 2024.

“Most cities now have a median house value that is at least 1.5 times higher than the median unit value,” he explained.

“With stretched housing affordability, lower borrowing capacity and a lift in both investor and first-home buyer activity, it’s not surprising to see the unit sector outperforming for a change.”

Separate figures also published on Thursday by PropTrack uncovered similar trends to CoreLogic, with its home value index showing a 0.08 per cent rise in prices nationally.

That data set had a similar split between momentum across the two largest capitals (Sydney and Melbourne) and the mid-sized capitals driving growth.

PropTrack senior economist Paul Ryan that strong housing demand is continuing to push prices higher in those cities, despite an increase in listings as owners look to offload their properties amid a high interest rate environment.

“Slow construction activity, above-average income growth and July’s tax cuts are clearly contributing,” he explained.

“Further home price growth is expected over the coming months as the market moves into the traditionally busier spring selling season.”

At the very least, borrowers shouldn’t be squeezed further in coming months after economists predicted the RBA will keep interest rates on pause following June-quarter inflation data on Wednesday.