Sydney home prices have shown signs of peaking and are beginning to fall in some areas as buyer demand cools and increased listing volumes pressure sellers to drop their expectations.

After The Daily Telegraph revealed last week that Sydney house prices are set to fall between $20,000-80,000 next year, new figures released by PropTrack show citywide growth in prices slowed to a crawl over November.

The median price of a Sydney dwelling, based on sales of units, townhouses and houses, grew 0.08 per cent over the month to hit $1,112,000 – effectively meaning the market tread water.

There was a similar level of growth in the two preceding months – a marked change from earlier in the year.

But the citywide growth figures masked varying conditions across different Sydney regions, with prices falling in the inner west and Sutherland Shire.

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Recent auctions have been mixed. Picture Thomas Lisson

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At a suburb level, nearly half the suburbs across Greater Sydney recorded a fall in prices over the three months leading into November. Most of the falls were in the range of 1-4 per cent.

It comes as ANZ on Friday became the latest “big four” lender to revise its rate predictions.

ANZ had previously expected the RBA to announce a cut in February. They’re now forecasting it to come in May – an expectation shared by Westpac and NAB.

Economists told The Daily Telegraph the changed horizon for interest rates may be contributing to an increased sense of hesitancy from home seekers.

And any sense of FOMO, or fear of missing out, would likely have evaporated after a surge in property listings over spring, which gave those buyers who were transacting much more choice.

The median price of Sydney dwellings is now just over $1.11m.

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“Softening in growth has occurred alongside a surge in stock for sale, giving buyers more choice and reducing the urgency to transact,” said PropTrack economist Eleanor Creagh.

“Increased stock for sale has been a contributor to slowing price growth, along with affordability constraints and the sustained higher interest rate environment.”

Recent conditions in the Sydney property market were a far cry from earlier this year when the market was reasonably strong.

Expectations of an interest-rate cut, coupled low stock levels, had driven up prices sharply in the first half of the year, but the Reserve Bank’s delays in adjusting rates have softened demand over spring.

PropTrack senior economist Eleanor Creagh said higher stock levels have contributed to the cooling market.

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“The market has turned on a dime,” said prominent auctioneer Chris Scerri.

“The best homes are still selling well but, with everything else, the price has to be right … some vendors are coming in too high and they’re struggling.”

Research house CoreLogic noted that “August likely marked the peak of the cycle” for Sydney, adding that “selling conditions have deteriorated through spring” after listings climbed to a six-year high.

Modelling by SQM Research released last week forecast Sydney home prices would drop 1-5 per cent over 2025, noting the severity of the falls would depend on when interest rates were cut.