Updated October 29, 2018 09:50:14 The Australian Property Price Index (APQI) has been flat in October after falling for a month and now stands at just over $1,000 per square foot.

The APQI has been used by both the Reserve Bank and the Australian Bureau of Statistics to gauge the housing market.

In the first half of the year, the APQIs monthly decline was less than 1 per cent and was also below the recent peak of over 2 per cent in the first quarter of 2018.

However, the latest decline was slightly below the 10-month average of just under 4 per cent.

It has been a quiet month so far for the APAQI, which was recently revised downwards by the Reserve and the ABI, which said it was likely to be stable for the remainder of 2018 but expected to fall.

While the APAs dip is a significant one, it does not represent a complete collapse.

ABS is forecasting that the APAS could fall by 2 per of its 1.2 million square foot capacity by 2021.

Barry O’Brien, chief economist at BDO, said the APIs drop was an anomaly and that it would be too early to know if it was indicative of an impending housing bubble.

“There is little sign of a housing bubble or a real deterioration in affordability, and the current dip does not seem to be a signal of an imminent downturn,” he said.

Mr O’Brien said there was little to suggest the API would have a negative impact on the broader economy, pointing to strong growth in the manufacturing sector.

But the Reserve said it would continue to review its housing forecast, and would likely continue to cut interest rates to help the economy, but only to a point.