Newcastle house prices rose in March, but property analysts say the market is entering a period of "unprecedented uncertainty".
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CoreLogic data show the median price of a house in the Newcastle and Lake Macquarie local government areas continued its steady recovery of the past six months, rising another 0.7 per cent.
Sydney prices jumped another 1.1 per cent, while Hunter prices outside Newcastle fell slightly in March.
But CoreLogic said in its monthly market update that the second half of March was weak as confidence slumped and social distancing policies took effect.
"The national March reading emerged as the lowest monthly gain since the market lifted in July," it said.
CoreLogic analyst Tim Lawless said recent price trends now looked irrelevant.
"The market won't be immune to a drop in sentiment and weaker economy, however, the extent of the impact on dwelling values remains highly uncertain," he said. "Capital growth trends will be contingent on how long it takes to contain the virus."
Open houses and on-site auctions are now banned.
"We are expecting the number of residential property sales to fall dramatically over the coming months, a consequence of tanking consumer confidence, a rising jobless rate and more cautious lending practices," Mr Lawless said.
"Restrictions on open homes and on-site auctions will compound the slowdown in buyer activity, as would any future policy announcements related to peripheral services such as building and pest inspections, conveyancing and furniture removals."
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