(Adds background on Australia's property market, details) Nov 8...

(Adds background on Australia's property market, details)

Nov 8 (Reuters) - Online real estate classifieds portal REA Group (REA) said on Friday the Australian residential market remains challenging, but there are signs of a recovery.

The Australia property market is emerging from the doldrums of a two-year downturn that chipped away at household wealth and confidence, and in turn hurt consumption and corporate earnings.

However, recent data indicate the worst is over. Home prices rose for a fourth straight month in October amid record-low interest rates and looser lending standards.

"We know the buyers are back and it's only a matter of time before the sellers follow," said Owen Wilson, REA's chief executive officer.

The company, which is majority owned by News Corp NWSA.O , reported a 14% drop in earnings before interest, tax, depreciation and amortisation (EBITDA) to A$114.9 million ($79.26 million) for the first quarter ended Sept. 30.

REA reiterated that listings in the first half of fiscal 2020 will be lower than last year, but added that revenue growth should pick up in the second half. ($1 = 1.4497 Australian dollars)