Australian property market faces largest correction in 40 years | 7NEWS

A leading property economist has warned millions of Australian renters could soon face big rent it rises as the real estate market changes.The caution comes as the once crowded Saturday home auction struggled to draw buyers.

In property, the winds are shifting.Buyers, they have been a little bit hesitant to go to the auctions.Fancy this townhouse, it went to auction this morning in Sydney's pricey inner north and sold for for $205 ,000 below where it sold three years ago.

Price declines are most clearly showing up in both Sydney and Melbourne.$1 ,226 ,000.

The numbers of would -be buyers at home inspections.

Selling, we are done and sold.

has gone through the floorboards.

They have come down dramatically since the start of the year.

Thanks to climbing interest rates, pessimism and the budget's crackdown on property tax breaks.The Prime Minister taking a breather from housing politics as he met New Zealand's leader on Queensland's Sunshine Coast.

So we're providing a sound economic management in difficult global economic circumstances.

But is it sound to make changes analysts expect will accelerate a house price fall of up to 10 percent?Potentially Australia's largest property correction in 40 years.And yet Ray White's chief economist sees it differently.

If we did see a 10 % decline in pricing across Australia, it would only take us back to around July last year.

The more dangerous impact, she argues, will be on renters, as the property investors they rely on take their money elsewhere.

Unfortunately, we do expect the pressure to move on to renters.And as a result, it will be much more expensive to rent.

Tim Lester, Seven News.