New house price data shows values have dropped across Sydney in the last three months from the beaches of the east, to the foot of the Blue Mountains in the west.

The latest Cotality house price mapping shows a significant drop in the value of homes across metropolitan Sydney in the last three months.

According to the data, the Canterbury-Bankstown community of Earlwood recorded a 9.5 per cent drop in the last three months.

The analysis showed house prices dropped by 8.6 per cent in Maroubra, 7.9 per cent in Randwick and 7.7 per cent in Campsie.

The value of houses in West Pennant Hills fell 7.5 per cent during the same period, followed by a 7.1 per cent drop in Collaroy, a 6.5 per cent fall in Epping and the same in Baulkham Hills.

The value of homes in the Prime Minister’s electorate also dropped, with the value of houses in Marrickville falling 5.5 per cent.

Marayong saw a 6.2 per cent decline, while Penrith homeowners experienced a 3.8 per cent fall over the last three months.

Scott Baxter, of Ray White Epping, said homeowners were bearing the brunt of the housing market downturn, “with losses, but properties were still turning over”.

“Sellers know they are going to be taking a hit, but are hopeful they will get a better deal when buying,” he said.

Meanwhile, REA Group Economist Luc Redman said data also confirmed the property market was experiencing “strong downward pressure on property values” following back-to-back-to-back interest rate rises and the Federal Budget on May 12.

The Prime Minister argued last month that “Treasury estimates are that house prices will continue to increase”, despite changes to negative gearing and capital gains concessions.

He went on to tell ABC’s 7:30 that, according to Treasury modelling, house prices would “increase by a lesser amount than they would have otherwise with these changes”.

Treasury officials claimed in Budget documents the changes were “expected to lead to a small and temporary slowing in house price growth, estimated to see prices grow by around 2 per cent less over a couple years relative to no tax policy change”.

Treasurer Jim Chalmers said in a June press conference the government was “not targeting a particular price outcome in percentage terms or in dollar terms”, through the reforms.

Meanwhile, Housing Minister Clare O’Neil conceded the reforms would “have a modest affordability effect on house prices in Australia”.

Social demographer Mark McCrindle said the drop in house value was “far bigger” than forecasted, while sounding the alarm first home buyers could fall into “negative equity”.

Mr McCrindle said a stalling housing market would also have to buck the challenge of “falling sentiment”.

“(First home buyers) want to know that they have the opportunity to buy an asset that can become that nest egg,” he said. “So that’s the big challenge is the decline in confidence that flows with the declined price values.”

Realestate.com.au data shows NSW clearance rates on July 11 reached just 45 per cent, with 546 auctions recorded.

A spokesman for Housing Minister Clare O’Neil doubled down that “Treasury’s Budget forecasts show house prices will continue to grow over time, but slightly slower than they otherwise would due to the Government’s tax reforms”.

Meanwhile, the Housing Minister went on to boast about the 50,000 key workers who have opted into the government’s 5 per cent Deposit Scheme, including 13,800 in NSW.

“These are the Australians who teach our children, care for our loved ones and keep

our communities safe,” Ms O’Neil said. “They shouldn’t be locked out of the communities they serve.”

“We’re changing that by making sure first home buyers and investors compete on a level playing field.”