A property deal that would have been hard to imagine just a year ago is turning heads in Sydney’s west. A three-bedroom home at 22 Marquesa Crescent, Lethbridge Park, is on the market for around $800,000 — a price that reflects a significant shift in market conditions.
Increased Stock Drives Price Drops
“At the moment there is a lot more stock that has come to the market and is still out there,” said Laing+Simmons agent Paul Abassi. “About a year ago, this home probably would have been at least $100,000 to $150,000 more.” The Lethbridge Park listing is not an isolated case. Similar price points are appearing across suburbs including Girraween, Chipping Norton, Lurnea, Rosemeadow, North Gosford, and Charmhaven, with dozens of properties sitting around the $850,000 mark.
Buyers Gain Upper Hand After Years of Competition
The increase in available stock is helping shift conditions in favour of buyers after years of intense competition. According to property analytics firm Cotality, more sellers are listing now amid expectations prices could soften further. “We have seen a lot of vendors entering the market, hoping to get in ahead of potential price declines over coming months,” said Cotality economist Gerard Burg.
Forecasts Point to Further Declines
Domain’s latest forecast suggests Sydney house prices could fall by between $52,000 and $122,000 across the 2026–27 financial year, equivalent to a decline of between three and seven per cent. The largest falls are expected in the Eastern Suburbs, Inner West, Lower North Shore, and Northern Beaches.
Interest Rates Weigh on Borrowing Capacity
Domain Chief Economist Nicola Powell said higher interest rates continue to weigh on purchasing power. “We’ve seen three rate hikes, that means borrowing capacity for the average household has dropped by about 7 or 8 per cent,” she said. However, not every corner of the market is expected to move the same way. “We’re likely to see more affordable segments of the housing market hold up better, that means unit prices but also entry house prices,” she added.
Western Sydney Remains Attractive for Buyers
Buyers agent Eddie Dilleen said lower-priced suburbs, particularly across Western Sydney, could continue attracting interest. “Sydney buyers should be looking in the current market in the affordable brackets… Western Sydney where you can buy houses just under a million,” Dilleen said. He also pointed to policy changes affecting investor activity, noting that the removal of negative gearing concessions had reduced investor borrowing power and changed purchasing behaviour.
Rate Cuts Needed for Stronger Recovery
Economists say interest rate cuts would help improve confidence, but they are not expected until next year. “It will help to shift sentiment but it’s not going to be that instant injection of energy into the housing market,” Powell said.
