Wagga's house values declined over August and September, first downwards trend in 17 months

CoreLogic's national Home Value Index showed a national decline of -1.4 per cent in September, the fifth consecutive month of decline.

Wagga's house values have declined in successive months, -0.9 per cent for August and -1.4 per cent for September.

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These are the first declines in house values since February 2021 - prices peaked in July this year when median prices sat at $473,775.

The wider Riverina showed declines of -0.4 per cent in August, followed by -0.9 per cent in September.

Growth across all dwellings fell to -0.3 per cent in the Riverina, with median value for a Riverina property now sitting at $429,262.

CoreLogic economist Kaytlin Ezzy said the declines are a result of consecutive rate hikes and she expects house values will continue to fall.

"Most economists are expecting interest rates to rise until March next year. I would expect house prices to fall across the region ... I would expect values to find their floor as interest rates find their ceiling," she said.

Adam Humbert from Kitson Property said the decline is reflective of what he is seeing in the local market.

"Those figures do not surprise me," he said. "We're in a stabilising market, I wouldn't say we're in a cooling market."

Mr Humbert doesn't expect interest rates to affect the local market due to relatively low median house prices.

"We are a strong little bubble ... Wagga will hold, we won't see increased prices but I don't think we'll see major declines either," he said.

Professionals Wagga director Paul Irvine thinks the decline reflects a calming of the local market.

"We all know we've had exponential growth, but we'll see Wagga plateau now," he said. "There's been no adverse effect on our market, we're still actively selling properties quickly.

"What I've seen is the volatility is gone ... Wagga is still super strong."

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