Penny and her family were delivered a $140,000 blow after Sydney house prices took a dive

Exclusive: Some new homeowners have taken a major financial hit after paying a “premium” just before the market hit a seismic shift following this year’s budget.

Sydney woman Penny Vandenhurk was hit with a rare double property price whammy after Treasurer Jim Chalmers delivered his sweeping tax reforms.

Do you have a story? Contact reporter April Glover at april.glover@nine.com.au

Vandenhurk and her husband purchased a three-bedroom townhouse in Sydney just five hours before the budget, signing the dotted line while blissfully unaware the prices would soon drastically tank.

The couple then sold their existing property for $140,000 less than it was valued weeks later, just as Sydney house prices slumped.

“We didn’t have time to wait on our purchase – people asked why we didn’t sign the following day. We were buying our dream home,” Vandenhurk told nine.com.au.

The negotiations had been going for 4 to 6 weeks and the owners were going to market if it wasn’t sold to us.”

As a buyer’s agent, Vandenhurk knew some changes to the housing market were imminent after reform to negative gearing and the capital gains tax (CGT) discount were flagged ahead of the budget.

She had no idea it would be so severe.

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Vandenhurk’s new home may now be worth close to $100,000 less than she bought it on May 12 after Sydney house prices fell by between 0.5 and 1.5 per cent.

This pain may be short-lived, as the Sydney mum predicts the downturn is a temporary dip.

The biggest blow came when the family sold their former home.

Vandenhurk said she “reluctantly” sold her townhouse at an auction for $1.56 million to secure the capital for her recent purchase.

It had been valued by an appraiser for $1.7 million just before the housing market entered into a freefall.

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“I’ve felt sick about the whole thing. And I work in the industry! I am not sure if it makes it better or worse,” she added.

A smaller home on the couple’s same block, which faced west instead of north and didn’t have a study, had been sold a week prior for $1.66 million.

They had expected to at least surpass this figure.

“It feels brutal to have sold for $100,000 less,” Vandenhurk said.

“If people say selling for less is the government doing their job... that’s not true. I’m an owner-occupier, I sold my owner-occupier home to buy a new one.

“I’m not an investor who owns 50 properties. Just a middle-class working mum who sold my property to buy a new one.

“I’m the one left paying an extra $1000 a month on my mortgage, because of my property being devalued by their changes.”

Recent sellers despondent over Sydney price drop

The Vandenhurk family are not alone.

A similar price shock hit a seller in Erskineville in Sydney’s Inner West earlier this month.

A three-bedroom home in the suburb sold for $1.905 million in November 2025.

On July 4, a virtually identical home on the same street sold for $1.586 million, a $314,000 price drop in just eight months.

Founder of Austin Buyers Agents Luke Bindley told nine.com.au that homebuyers who signed the contract of sale just before the budget likely paid a “premium” for their property.

He warned some properties have plummeted by up to $300,000.

“For the people who bought at the top of that market, it doesn’t feel good at all,” Bindley explained.

“But I also see a real risk for buyers who purchased very recently with a small deposit, particularly through the 5 per cent deposit scheme. They have a very small buffer, so even a little dip can have a big impact.”

The market is now sliding into its ninth slump in 30 years, leaving vendors asking should they hold off selling, while buyers are wondering if it’s the best time to purchase.

Auction rates sank again this weekend as wary buyers steered clear – but Bindley said sellers are also causing this decline.

“I’m seeing decent offers being put forward after weekend open homes and vendor’s having expectations of market conditions from six months ago and rejecting these offers,” he added.

The buyer’s agent expects to see more and more owners sitting tight and waiting it out rather than selling in a softer market.

There is hope on the horizon for panicked sellers or buyers sitting on potentially negative equity.

“Based on the forecasting I’d expect to see a change around mid-2027. I believe we will see Sydney and Melbourne leading the recovery,” Bindley said.

“So far, 2026 seems like more of a holding pattern, with many deciding to pause their decisions rather than a complete crash.”