<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Investors have left the market and buyers aren't biting, leaving house prices, particularly those on the more expensive end, tumbling in the past few weeks.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We could be talking five to 10 per cent perhaps, depending suburb to suburb," auctioneer Jason Keen told 9News.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The sharp downturn has hit one mortgage-heavy cohort hardest first home buyers, who are now facing negative equity.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/wa-weather-unusually-strong-system-could-bring-destructive-winds-heavy-falls-and-localised-tornadoes-for-western-australia/6bcc2234-b7b7-472d-9f48-6ed97e3c4e59" rel="" target="_blank" title="Perth braces for once-in-five-years storm as destructive wind and rain batter WA"><strong><span>Perth braces for once-in-five-years storm as destructive wind and rain batter WA</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I regard it essentially as the second worst financial position outside of bankruptcy," Louis Christopher from SQM Research told 9News.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Across Sydney and Melbourne, 50,000 thousand people from have used the government's five per cent deposit scheme.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>And that's where experts are tipping prices to drop.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/housing-first-home-deposit-scheme-backfires-as-house-prices-tumble/37adc82c-fd1f-4af3-ab97-66a5edb7f62f" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"For those who've bought in a falling market with the maximum leverage, it just compounds the losses," Christopher said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/mudgee-police-station-man-arrested-new-south-wales-news/6b8820ab-eb07-4802-9a4c-5c42086f4203" rel="" target="_blank" title="Retiring police officer the target of man's car, court hears"><strong><span>Retiring police officer the target of man's car, court hears</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This means, for a home bought for $1 million using the government's five per cent deposit scheme, there'd be a $950,000 mortgage on the property.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If that home now drops in value by six percent, it becomes worth $940,000, meaning you're actually carrying negative equity of $10,000.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Now these changes aren't a level up for young Australians wanting to own a home," Opposition leader Angus Taylor said about Labor's budget proposals for housing.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But Energy Minister Chris Bowen disagrees.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/videos/national/monster-fish-caught-off-south-australia/cmps4a0vr003j0hqc3iqz05rh" rel="" target="_blank" title=""><strong><span>Monster fish caught off South Australia</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There'll be short-term fluctuations in the housing market, but you've got to set your policies for the medium and long-term," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The tip for those in a crunch is don't panic and, if you can, don't sell.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If there's any way to hold on, hold on," Keen said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We know that things can correct themselves."</span></div></div>