Home prices in Australian capital cities fell by 0.7 per cent in the three months to June.
Prices also fell 0.6 per cent during the year to June 2018, according to the latest Australian Bureau of Statistics' Residential Property Price Index released on Tuesday.
The drop was greatest in Sydney in the June quarter, where house prices fell by 1.2 per cent.
Darwin experienced the next most significant drop in the quarter, of 0.9 per cent, followed by Melbourne where prices fell by 0.8 per cent.
Prices had grown in Melbourne by 2.3 per cent across the year.
The figures mean that the average price of a home in the nation is now $686,200.
The total value of Australia's 10 million residential properties is $6.9 trillion, which has fallen by $13.3 billion.