A property deal that would have been hard to imagine just a year ago is turning heads in Sydney’s west.

A three-bedder on 22 Marquesa Crescent, Lethbridge Park, is on the market for around $800,000.

WATCH THE VIDEO ABOVE: Sydney property prices drop under a million

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“At the moment there is a lot more stock that has come to the market and is still out there,” Laing+Simmons agent Paul Abassi said.

“About a year ago, this home probably would have been at least $100,000 to $150,000 more.”

And it’s not an isolated example.

The property at Lethbridge Park. Credit: 7NEWS

Active listings around the same price point are appearing across Girraween, Chipping Norton, Lurnea, Rosemeadow, North Gosford and Charmhaven, with dozens more sitting around the $850,000 mark.

The increase in available stock is helping shift conditions in favour of buyers after years of intense competition.

According to property analytics firm Cotality, more sellers are listing now amid expectations prices could soften further.

“We have seen a lot of vendors entering the market, hoping to get in ahead of potential price declines over coming months,” Cotality economist Gerard Burg said.

Domain’s latest forecast suggests Sydney house prices could fall by between $52,000 and $122,000 across the 2026–27 financial year, equivalent to a decline of between three and seven per cent.

The largest falls are expected in the Eastern Suburbs, Inner West, Lower North Shore and Northern Beaches.

Prices may soften further, experts predict. (AAP Image/Mick Tsikas) NO ARCHIVING Credit: MICK TSIKAS/AAPIMAGE

Domain Chief Economist Nicola Powell said higher interest rates continue to weigh on purchasing power.

“We’ve seen three rate hikes, that means borrowing capacity for the average household has dropped by about 7 or 8 per cent,” she said.

But not every corner of the market is expected to move the same way.

“We’re likely to see more affordable segments of the housing market hold up better, that means unit prices but also entry house prices,” she said.

Buyers agent Eddie Dilleen said lower-priced suburbs particularly across Western Sydney could continue attracting interest.

“Sydney buyers should be looking in the current market in the affordable brackets… Western Sydney where you can buy houses just under a million,” Dilleen said.

Lower priced suburbs across Western Sydney will continue attracting interest, experts say. Credit: Jenny Evans/Getty Images

Dilleen also pointed to policy changes affecting investor activity, saying the removal of negative gearing concessions had reduced investor borrowing power and changed purchasing behaviour.

So what would bring stronger price growth back?

Economists say interest rate cuts would help improve confidence but they are not expected until next year.

“It will help to shift sentiment but it’s not going to be that instant injection of energy into the housing market,” Powell said.