House sales have collapsed to their lowest level since Paul Keating was prime minister, dragging down property values across the country and putting the Reserve Bank under pressure to deliver an interest rate cut next week.

As the head of the ANZ said an interest rate cut would give the economy some much needed "juice", new analysis by CoreLogic shows house values over the past year have now fallen further than during the Global Financial Crisis, led down by the Sydney and Melbourne property markets.

UBS senior economist George Tharenou said the number of home sales had now fallen by 20 per cent over the past year to its lowest level since early 1996.

The rate of property turnover had "collapsed" to less than 3 per cent, a development that was a bad sign for renovations and consumption.