The housing minister’s comments come amid a downturn that has sent house prices down 1 per cent in Sydney in the past four weeks as auction clearances near record lows.

Prices in Sydney and Melbourne could fall by 8 per cent by the end of the year as auction clearance rates slump to near the lowest on record.

Housing Minister Clare O'Neil says Australia's housing market is experiencing a correction following COVID amid low auction clearance rates in major capital cities. Follow live.