Sydney property market cooling off

The Sydney property market is starting to cool off, with the clearance rates dipping to their lowest level in three years.

As auction hammers fell across Sydney on the weekend, the clearance rate dropped to 71 per cent.

Andrew Wilson from the Domain Group says it is clear the market is now tracking backwards.

“There's no doubt that that super energy of the Sydney auction market is now tracking backwards and tracking backwards sharply,” he told 7 News.

While Camperdown, Dee Why, Killara and Dulwich Hill have all recorded a 100 per cent clearance rate so far this month, Greystanes had a rate of just 30 per cent.

Other poor performing suburbs include Revesby and Smithfield which have had a clearance rate of 50 per cent, Hurstvile, 46, and Waterloo, 33.

The downward trend is likely to continue as more and more new homes continue to be built.

This combined with the fact that mortgages are at their cheapest in fifty years, has analysts predicting that Sydney's house prices might have finally peaked.

“We really don't have the capacity to keep pushing up prices at those extraordinary rates we've had in Sydney over the last three years,” Mr Wilson noted.

Up to 1000 homes are expected to be offered at auction at the first Super Saturday.