HOUSE prices in Australia's capital cities fell 1.1 per cent in May, the latest sign Australia's booming property market has finally peaked.

The fall was led by declines in Sydney and Melbourne of 1.3 per cent and 1.7 per cent respectively, according to CoreLogic's latest home value index.

Brisbane and Adelaide notched up slight gains of 0.3 per cent and 0.8 per cent, while Perth and Canberra fell 0.4 per cent and 0.1 per cent. The biggest falls were in Hobart and Darwin, which were down 4.8 per cent and 3.5 per cent on the previous month.