"While the historical trigger for a housing downturn [of RBA hikes] is missing, mortgage rates are rising, and sentiment of home buying collapsed to a record low," UBS' economists Scott Haslem, George Tharenou and Jim Xu said in a note to clients.

"Looking ahead price growth has likely now peaked, and we see a moderation ahead amid record supply and poor housing affordability.

"We are 'calling the top', but stick to our forecasts for commencements to 'correct but not collapse'."

The analysts did note however that they did not think there would be a price crash because of the lack of RBA rate hikes.

Pundits such as Christopher Joye have also warned the housing market might be grinding to a standstill. "While a very early partial read, auction clearance rates were softer last weekend, which corresponds with the pronounced deceleration in price momentum. I expect this to continue over the rest of the year," he said on Friday.

Other analysts such as CoreLogic-Moody's have forecast marginal price falls to start next year.

But other analysts disagree. Louis Christopher, who has been accurately forecasting price growth in Sydney, said it was far too early to tell and wanted more information on four key areas including a more definite trend in clearance rates, total listing levels, house finance data (which has continued to show growth) and asking prices.


"Before we call any slowdown we would want to see clearance rates fall into the 60 per cent range then I would start to pay serious attention," Mr Christopher said, "I think we need a lot more information."

Ray White Real Estate chairman Brian White also questioned the negative sentiment.

"We are still living in an era of relatively low interest rates so to say there will be no more price growth I don't understand," Mr White said.

"We had plenty of auctions on the weekend and there were many that sold above reserve. I also think there are massive parts of Australia who have not seen the price growth so I would trust that those setting housing policies realise the disparity in markets."

Clearance rates fall back

Figures from Domain showed the clearance rate in Sydney eased back to 75.6 after several weekends of more than 80 per cent, although the result was still higher then the 68.8 per cent in the same week last year.

UBS


CoreLogic numbers for the weekend also showed the lower clearance rate for Sydney reaching 75.8 per cent down from several weeks of higher clearance rates and down from the same week last year.

Domain's chief economist Dr Andrew Wilson was also cautious about calling the top of the market.

"It is the lowest Sydney result for the year – a drop of 6 per cent," Mr Wilson said,

"While we don't want to call the market yet we did think it was [an] interesting result – it may be easing but we would like to see more consistent data on that before we say its the top."

This property at 12 Agnes Street, Strathfield, Sydney sold for $900,000 over its reserve. The vendors, an elderly couple, will look to live in an apartment. Supplied

The most expensive house to sell in Sydney on the weekend was a four-bedroom house at 12 Agnes Street in Sydney's western suburb of Strathfield.

The property sold through Devine Real Estate Strathfield for $5.4 million – $900,000 over its reserve price.

"The lack of stock is what is underpinning the prices in the market," Steven Devine said.


"Most of the buyers were looking to pull the house down and rebuild. We sold a house across the road with an identical size of land for $4.68 million about four weeks ago."

In Sydney's inner northern suburb of Lane Cove Belle Property sold a five-bedroom, three-bathroom home on a 904 square metre block at 21 Fraser Street for $3.4 million – or $350,000 over reserve.

In Melbourne, clearance rates were still comparatively strong with Domain recording 79.5 per cent, well up on the 71.5 per cent this time last year.

CoreLogic showed similar results, declaring Melbourne's clearance rate at 76.8 per cent, down from 81.3 per cent last week, however higher than what was seen over the same period last year of 71.5 per cent.

"Melbourne just keeps keeping on despite the distraction of holidays and the ANZAC weekend," Andrew Wilson said, "Melbourne still has plenty of upside energy, especially with stamp duty exemption for first home buyers after June 30."