Macquarie Bank property research analyst Rod Cornish said defaults among mortgage brokers and low-documentation loans were higher than major banks.
However, he said Australian Prudential Regulation Authority figures showed the number of loans across Sydney in default with the major banks had begun to rise.
'You would expect the price impact on homes would be worse in the outer western suburbs where the rates rises and fuel rises would have a higher impact,' he said.
Elliott Shiner First National real-estate principal Angela Elliott said: 'Everything that is selling now is selling for $40,000 to $50,000 less than it was in 2003. Properties have dropped by a good 30 per cent in value.
'You can pick up properties in the Mount Druitt area for $180,000 to $200,000. There are real bargains to be had, but where are the buyers?'
Bought for $262,500 in 2003, sold for $95,000 last week