COOLING in Sydney’s housing market has sparked desperate discounts across the city with some frustrated homeowners knocking as much as $550,000 off their asking prices in a bid to get the properties sold.

In the southern suburbs, across to the inner west and Western Sydney and even in the exclusive Harbour-side enclaves of the east, owner expectations are tumbling.

The traditional spring surge has seen an increase in properties for sale but also a drop in demand, which has eased pressure on wannabe homeowners to keep bidding up to beat rival house hunters.

And market data is reflecting the flattening out. CoreLogic data showed the city’s median home price inched up just 0.2 per cent over the past three months.

Panic purchasing is at last grinding to a halt which means vendors are being forced to dial down expectations.

The deepest cuts are being felt in up-market areas where optimism has been pushed to unrealistic levels by the unprecedented boom in prices that occurred over 2013 to 2016.

Listings data revealed the biggest bargains to be had are in Vaucluse where on average, prices are being slashed by 27 per cent.

Sellers in Russell Lea and Drummoyne in the inner west cut 15-20 per cent off their listed prices. A particularly striking example is the five-bedroom house at 41 The Parade in Russell Lea, currently listed for $2.8 million — $550,000 lower than the original asking price of $3.35 million. A nearby home at 25A The Parade is listed $200,000 below the original price of $3 million.

In the nearby suburbs of St Peters and Dulwich Hill the discounts were 9 per cent, while down the M4 Wentworthville vendors were cutting an average of 8.6 per cent from the prices of their homes and Girraween was seeing an average discount of 7.9 per cent.

Heading southwest, Belmore was discounting at an average of 8.5 per cent and Kingsgrove 7.9 per cent.

And heading into Sydney’s south, CoreLogic research showed that prices on properties in Connell’s Point, Kurnell and Hurstville Grove were being discounted at about 10 per cent.

Real Estate Institute of NSW president John Cunningham said optimistic vendors had simply failed to read the changes in the market.

“There’s no more boom but some agents are telling sellers they can still expect boom prices so they’re waiting for miraculous buyers to appear and pay premium prices when they aren’t there anymore,” Mr Cunningham said.

Vendors who listed too high ran the risk of later discounting their homes to prices well below those for comparable homes in their area, Mr Cunningham added.

“Pricing too high is risky,” he said. “If too many buyers are priced out of the sale, the property will stay on the market for longer and it will have a (stigma). Buyers will then want it for a bargain.”

A mix of homes in St George suburb Hurstville Grove are listed at reduced prices, including 42 West Crescent, listed at $765,000 compared to $890,000 originally, and 6/44 East Crescent, listed at $1.25 million compared to $1.6 million originally.

McGrath-Sutherland Shire agent Nathan Cawsey, who is selling a Sylvania Waters home on Clarence Crescent for about $300,000 less than originally listed, said it was “an incredible time” to be a buyer.

“We’ve had a 70 per cent drop in buyers in our market. Auctions only have one or two bidders. It’s a very good opportunity to get into the market,” he said.

Waterloo renter Vanessa Benson, 45, is on the hunt for a home in the eastern suburbs and said she was excited by the chance to get a discount.

“Buying in Sydney is always going to be a challenge but if sellers are taking two months or longer to sell it will certainly be much easier to negotiate,” she said. “I’m looking forward to buying something at a more reasonable price.”