Sydney is a city of extremes when it comes to house prices.

Homebuyers on an average wage can today afford to purchase houses in twice as many Sydney suburbs as they could two years ago, when prices were at their peak.

New research shows that in 2017, those on the city median household income of $105,000 a year before tax could afford a median priced house in only 5 per cent of Sydney’s suburbs.

That’s if they wanted to avoid mortgage stress — a situation where loan repayments eat up more than a third of your income.

MORE: Buyer turnout surges at city auctions

Sydney suburbs leading market recovery

The same buyers can now afford houses in 10 per cent of suburbs due to recent prices falls and interest rate cuts, analysis of CoreLogic data showed.

Sydney prices per suburb.

Unit buyers have even more options — an average earner can now afford median priced units in 31 per cent of Sydney suburbs, compared to 20 per cent two years ago.

Property experts described recent market moves as a “game changer” for buyers.

Sydney home prices fell an average 15 per cent over the past two years, while banks are now offering mortgage rates as low as 3.5 per cent — well under the 5 per cent variable rate most lenders offered in 2017.

“It’s become a great time to be a buyer,” Mortgage Choice’s Jane Vaughan said.

Sydney’s cheapest suburbs.

“Before, lots of buyers were sitting out the market because it was too difficult but now more are finding they can get in.”

Property advisory service Patrick Leo’s director James Nihill said Sydney remained a market where buyers still needed to spend big to get a home but it was “definitely more affordable”.

“Credit has never been this cheap,” he said, adding that buyers were also benefiting from reduced competition.

“There is no more frenzy in the market.

“There is a perception that it’s a good time to be buying but no one is making crazy offers any more.”

Ashleigh Smith, 26, and partner Chris Oakes, 29 bought a home in Lane Cove.

Some of the biggest affordability gains were in Sydney’s west.

Middle-of-the-road houses became affordable again for average earners in Hebersham, Colyton, St Marys and Oakhurst.

In the southwest, house prices in Rosemeadow, Woodbine, Bradbury and Campbelltown were also affordable again.

Sydney’s cheapest properties could be found in Hawkesbury suburb Vineyard, where units at the median of $223,000 were affordable for buyers on an income of about $40,000.

Out west, median units were affordable for buyers earning about $60,000 in Winston Hills and Carramar.

Recent drops in prices allowed Ashleigh Smith and Chris Oakes to finally bag their first home after hunting without success for a year,

The couple first started their property hunt in 2017 when the market was at its peak.

“Properties would sell for way more than the asking prices and the homes we could afford were not what we wanted,” Ms Smith said.

Their prospects began to improve late last year when it became clear prices were dropping and competition from other buyers was waning.

Vaucluse is Sydney’s most expensive suburb to buy a house. This property is on the market for about $60 million.

“It’s become a lot easier to get your foot in the door now,” Ms Smith said. “Before, our offers weren’t getting taken seriously but that changed.”

The couple are now the proud owners of a unit in Lane Cove, which they claim they wouldn’t have been able to afford two years ago.

SIGN UP TO THE NSW REAL ESTATE NEWSLETTER

“We’re ecstatic,” Ms Smith said. “Buying a home was always on the cards for us, we just had to wait for things to get better.”