The Australian Financial Review reports that HTW valuer Robin Gardiner says there were 550 transactions in 2008 worth more than $1.5 million, which compares to more than 900 transactions in 2007 and shows the bull run is over.

"Most agents are reporting a distinct lack of liquidity in the market," he said. "People who are expecting a falling market will sit on their hands."

Mr Gardiner, who is based in Tamworth in northern NSW, said there was a strong correlation between the fall in transaction volumes and values, and that the drop in sales supported his research of property values across the northern half of NSW.

Herron Todd White principal Kerry Herron, who has been in the industry for 41 years, estimates that rural property values around the country will fall between 5pc and 15pc but will level out quickly.