First house prices dropped in the cities, then in the "lifestyle change" bigger regions and now here – according to a new report by property research firm Corelogic.

"Since peaking in June 2022, house values across the central west have fallen by -5.3%, taking values just 0.6% higher over the year to January," Corelogic Economist Kaitlyn Ezzy told the Western Plains App.

"The sharp reduction in borrowing capacity driven by nine consecutive rate rises, coupled with high inflation and low consumer confidence, has put downward pressure on demand, wiping the equivalent of approximately -$32,500 off central west’s median house value".

But these reductions are all relative explains Ezzy telling us "It’s important to remember the current decline comes after record-breaking growth over the pandemic period, with values still 45.6% higher than they were at the onset of COVID in March 2020".

Many regional markets across the nation are now seeing house prices drop.

Twelve of the 25 regional areas across Australia analysed by property data firm Corelogic had a drop in houses prices between November 2022 through to January this year. 

This is a significant change; 21 of the same 25 had property price increases in the 12 months to October 2022.

A home for sale in Gilgandra. Image: Allhomes.com.au

CoreLogic Head of Research Eliza Owen said the country’s most popular lifestyle markets had been hardest hit by softer market conditions and rate increases.

However, the Central West - which includes western plains towns like Gilgandra, Narromine, Coonabarabran and Condobolin - was not quite so hard hit.

There were 4,487 dwelling sales across the Central West from November 2022 through a January - 23.7% lower than the same two months one year ago, and 4.7% below the five year average for the region.

Over the past three months, Central West houses in the upper price range values dropped by 3.6%. Lower price range houses increased in value 8.8%. The median house price value in our region is now $579,714. 

A house for sale in the Central West now sits on the market for average for 54 days compared to 32 days this time last year, and vendors now offer slightly higher discounts off the sale price.

Based on sales from the past two months, Gilgandra has a median house value of $179,000 – this declined 2.6% compared the prior 12 month period of sales. While Narromine had a median house value of $293,999, rising 4.4% from the previous year.

"The current downwards trends seen across the Central West are fairly in line with the declines seen across the border market, with the more expensive capitals and regional markets leading the downturn, before filtering into the more affordable regional markets," Ms Ezzy told the Western Plains App.

"The peak-to-trough falls are fairly in line with other more affordable regional NSW house markets, including the Murray(-4.1%), the Capital Region (-7.2%) and the Mid North Coast (-7.6%)".

 Kaitlyn Ezzy. Image: Corelogic.

Looking further afield, NSW’s New England and north west and the Riverina reported gains of 11.5% and 10.1%, respectively.

The upmarket coastal and hinterland Richmond-Tweed region in NSW recorded the biggest drop in values in all regional areas Australia wide.

“This was the region where values skyrocketed, with houses increasing more than 50% during COVID, taking the median house value to more than $1.1 million. Since then much has changed with borders reopening, outbound travel returning, workers returning to the office not to mention the overlay of nine rate rises. It’s been a swift and significant shift," Ms Owed said