Home hunters pushed back against high asking prices for mid-market properties in many pockets of Sydney on Saturday as the auction clearance rate continued to nosedive.

Domain Group posted a clearance rate of 55.7 per cent from 336 reported auction results. The result was seven percentage points down on the 63 per cent preliminary clearance rate reported on the weekend of May 26 and 27, a figure that was subsequently revised down to 56.5 per cent.

“The fear of missing out for buyers has gone, and the Sydney market is having a modest correction,” said buyer’s agent Rod McLoughlin, from TBAS.

“I anticipate the market will be sluggish for the next 12 months with the possibility of another 5 per cent decline, which will be attributed to the banks tightening their lending policies.”

There were hits and misses on Saturday. The top end of the market (above $3 million) and the entry-level markets are faring reasonably well in the prime inner-ring areas, but activity in the $1 million- $2 million market is being constrained by stricter lending practices.

The most expensive sale on the weekend was a contemporary four-bedroom home at 20 Wilona Avenue, Greenwich. At a hot auction, the property bested its reserve by $250,000 to sell for $5.75 million through Belle Property Lane Cove.

A crowd of 180 onlookers watched five active bidders duel for the keys. The bidding opened at $4.7 million and the price soon sailed past the $5.5 million reserve.

“The result shows that the top end is decently strong when the house is right,” said Belle selling agent James Bennett. “The $5.75 million sale price was very much against the grain. That is $1.4 million over the street record.”

Mr Bennett’s sales office experienced mixed fortunes at the weekend with most properties selling after they passed in at auction. He said the sub-$2 million segment was weaker than the top end.

One inner-west property that did well was a semi at 71 Premier Street, Marrickville. The house had a price guide of $1.1 million to $1.2 million and attracted an opening offer of $1.03 million, with four parties competing.

Ray White Surry Hills selling agent Ercan Ersan said the property was called on the market when it hit the reserve of $1.2 million and sold for $1.29 million.

“Any inner-city house between $1 million and $1.5 million is still doing well,” he said. “The young couple who bought this house are going to rent it out and stay in their current apartment, but they are ultimately owner-occupiers.”

Moving up to a larger property can be an ideal tactic in a stable or fading market. Buyers, who sell a lesser-value property and set themselves up for a more expensive purchase later on, could be in a position to gain a price advantage in this year’s stock-heavy spring market.

A large proportion of properties continue to be withdrawn before auction. On Saturday, 670 auctions were scheduled. Of these, 91 were withdrawn, and the results of 243 auctions – more than one-third of the weekend’s inventory – weren’t reported by agents.

In May last year, when the market was at its peak, only 10 per cent or 12 per cent of auction results were not being reported in real-time on their auction day.

Another high priced result was for a house at 81 Belgrave Street, Bronte. The property fetched $4,825,000 through Phillips Pantzer Donnelley, while Saturday’s cheapest buy was a unit at 8/62 Alice Street, Harris Park, which made $500,000 through AB Property Consultants.