"They are stuck in cold water and are now trying to get into a different temperature. It's difficult for people to crystallise what's happening in the market."

Mr Whitney's firm is marketing the "best terrace house on the best street" in Redfern, 48 Great Buckingham Street, 3 kilometres from the CBD and in just over a week, the vendor has gone from a price expectation of $4.3 million to $3.5 million.

That said, the recently rebuilt 315sq m house is unique and comes with a 3-car garage and the asking price is still right on the money, colleague William Phillips who is selling the property said.

"The owner wants to establish its market value and be educated before he goes forward," he said.

Agents were however surprised at the results of other properties such as 609 Bourke Street, Redfern and 52 Surrey Street, Darlinghurst.

609 Bourke Street is an "original" dilapidated terrace which sold for $2.175 million in May but is now under offer for just over $2 million.

The three-bedroom "urban haven" at 52 Surrey Street sold for $2.6 million a year ago, but traded for $2.4 million last month.


"I won't say that prices have "fallen", remember the median price has risen 19 per cent a year for the past 15 years in these areas. It's just not growing at the rate as it was," Belle Property's Mark Foy said.

The three-bedroom "urban haven" at 52 Surrey Street sold for $2.6 million a year ago, but sold again for $2.4 million last month. Supplied

"There is a saying [in agency business], BHP's CEO does not set the share price, his shareholders do."

"It's been patchy and case by case."

While some properties have been sold quickly after purchase, agents are not seeing "panic" or "speculative trading".

"A general answer is that many people are selling for personal reasons for example due to divorce," Mr Phillips.

609 Bourke Street is an "original" dilapidated terrace which sold for $2.175 million in May but is now under offer for just over $2 million. Supplied

"It's too early for people to hedge their bets on what market will do. We haven't seen anyone brave enough just yet."

70 Telopea St Redfern was reduced in price and sold for $1.7 million in August. It was withdrawn from auction after nearly two months. Supplied