"Preliminary estimates for Sydney should be treated with extra caution at the moment," Westpac said.

This ties in with expectations of a further 1 per cent fall in prices in March, when Corelogic's house price monthly index is released on Monday.

In total, Sydney prices would be down more than 10 per cent in the year to March, while Melbourne prices would have slipped 9 per cent.

"With clearance rates this low, and with the sharpest drop of the downturn past us, the question is whether we could we see the rate of decline reduced," Mr Christopher said.

While it was early days, there could be some reprieve in the downturn after the election, when buyers make a temporary rush into the market to take advantage of negative gearing before it was changed by the new Labor government which is looking likely to win, Mr Christopher added.

Still some good sales, for example 14/14-18 Kareela Road, Cremorne Point Supplied

In Sydney, there were some good sales last week despite poor sentiments. Many homes in popular inner city areas sold at the end of the 30-day or 4-week auction campaign.

A three-bedroom home at 14/14-18 Kareela Road, Cremorne Point sold at $2.1 million, higher than its reserve of $2 million, through Belle Property. It last sold for $1.4 million in 2014.


Buyer's agent Morrell & Koren's Emma Bloom says buyers are like "Houdini", upsetting vendor sales plans. Referring to the auction of the four-bedroom house at 2 Wannon Court in Toorak on the weekend, Ms Bloom said while six parties showed keen interest, only one showed up.

Melbourne's southeast area cleared higher than all other regions at a preliminary rate of 61.3 per cent.

The NAB business survey will show continued softness in confidence in the market, AMP Capital chief economist Shane Oliver says.

Westpac's Housing Consumer Sentiment Index is also soft. NSW buyers were negative on "time to buy" even though employment conditions were good.

Victorian buyers showed fresh confidence in February, but sales turnover remained "extremely weak".

"In particular, a tightening in lending standards may have compounded what were already negative market dynamics following a drop in investor activity and initial price correction.

This makes it a difficult market to read – sentiment points to further declines near term but lending-related developments could again impact," Westpac says.