Sydney house prices have eroded nearly 10 per cent over the last 12 months and are on track for their worst year on record.

It comes as the national property market slumps to its weakest since the Global Financial Crisis a decade ago.

While values across Tasmania surged by their most for a year, the mainland price slide swiftly continued.

Since peaking in July 2017, Sydney’s housing market has dropped 9.5 per cent and is on track to eclipse the previous peak-to-trough decline set during the last recession.

CoreLogic Head of Research Tim Lawless says since the Banking Royal Commission, banks have been gun-shy when it comes to handing out credit.

But he says said it’s important to keep things in perspective.

“We still see Sydney values, for example, at nearly 60 per cent higher than when the growth cycle started.”

Click PLAY below to hear the full interview