CoreLogic's head of research,Tim Lawless,said housing markets had remained relatively resilient since the advent of the coronavirus pandemic.
"Record low interest rates,government support and loan repayment holidays for distressed borrowers have helped to insulate the housing market from a more significant downturn,"he said.
Assisting the the market has been a drop in advertised properties which fell 4.3 per cent through July to be 15.2 per cent lower over the past year.
Mr Lawless said federal and state government support programs,particularly those aimed at first time buyers,had helped the market.
But with much support starting to fall from October,and mortgage repayment holidays likely to expire by March,the market deteriorate that could force more properties to sale.
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"Urgent sales are likely to become more common as we approach these milestones,which will test the market's resilience,"he said.
"Similarly,the recent concerns of a second wave of the virus and the potential for renewed border closures and stricter social distancing polices are likely to further push consumer sentiment down. This is likely to weigh on both home buying and selling activity more broadly."
According to CoreLogic,the top end of the Sydney and Melbourne property markets are taking the largest hits at present.
In Sydney,the upper quartile of values have fallen by 2.5 per cent over the past four months compared to a flat result for lower valued dwellings.
In Melbourne,the top quartile of values have dropped by 5.2 per cent while lower quartiles have fallen by 2.3 per cent.
In both cities,the rents on units have fallen by more than 3 per cent since the start of April.
Rents have fallen by more than 3 per cent in Sydney and Melbourne,with the conversion of Airbnb properties into permanent rentals hitting both markets.Credit:AP
Mr Lawless said there were anecdotal reports that Airbnb properties had been converted into permanent rentals,temporarily adding to supply.
Job losses in particularly sectors were likely to continue weighing on rents.
"The significant employment decline across food and accommodation services,arts and recreation services is compounding the weak rental demand as these sectors workers are more likely to rent,"he said.
"To date these sectors have seen the largest number of job losses and impact to wages. With the second wave of social distancing policies and border closures,these workers are once again facing hardship."