Why Now Is the Perfect Time to List Your Home in Australia

Discover why the current Australian property market presents an ideal opportunity for homeowners to list their properties

The Unusual Paradox: more demand, fewer listings

The Australian property market is currently experiencing a unique and advantageous paradox for sellers. Despite a surge in population growth, the number of property listings has significantly dropped. This reduction in listings, coupled with increasing demand, creates a seller's market where fewer homes are available, but buyer interest remains high.

This paradox is not just a temporary blip but a sustained trend that has developed over the past decade. The total number of homes listed for sale has decreased by nearly 20% since FY2016, despite an increase in the total number of dwellings. This disconnect between supply and demand is driving property prices higher and making now an ideal time for homeowners to list their properties.

Population growth and its impact on property listings

Australia's population has grown substantially over the past decade, surging over 17% to 27 million in 2025. This growth has necessitated the construction of new dwellings, with the total number of homes increasing from around 9.5 million in 2015 to 11.3 million in 2025. Despite this increase in housing stock, the number of properties listed for sale has not kept pace.

In FY2016, more than 580,000 residential properties were listed for sale nationally. By FY2025, that number had dropped to just above 470,000. This decline is not limited to one region or city; it is a nationwide trend affecting both capital cities and regional areas. The result is a market with more people and more homes but fewer properties available for sale, leading to increased competition among buyers.

How low listings are driving property prices higher

The scarcity of property listings is one of the key factors driving up property prices in Australia. With fewer homes available for sale, buyers are forced to compete more aggressively for the limited stock, pushing prices higher. This trend is evident across both capital cities and regional markets, where listings are well below historical benchmarks.

According to Cotality’s Home Value Index, national dwelling values rose 0.7% in August 2025, the strongest monthly gain since May of the previous year. This lift in property values is being supported by low stock levels, improving buyer confidence and stronger borrowing capacity despite affordability concerns. Auction clearance rates have also reached about 70%, indicating robust buyer activity and competition.

Regional insights: where listings are dropping the most

While the overall trend of declining listings is evident nationwide, some regions are experiencing more pronounced drops than others. Adelaide, Hobart and Brisbane have seen the most significant declines in property listings, with reductions of 16.3%, 16.5% and 10.5% respectively compared to their 10-year averages. Regional markets, particularly in Queensland and Western Australia, have also recorded steep declines in listings.

Even traditionally strong markets like Sydney and Melbourne have seen fluctuations. While Sydney's listings briefly exceeded the 10-year average in early 2025, this momentum did not last, and listings dropped back below average by April. Melbourne's listings have remained relatively stable but still show a slight decline from historical norms.

Key factors behind the decline in property listings

Several structural factors are contributing to the sustained decline in property listings across Australia:

1. Limited upsizing and downsizing activity: Many homeowners are staying put due to a lack of suitable alternatives. Downsizers struggle to find the right next home, while upsizers are hesitant to trade into a more expensive mortgage environment.
2. High interest rates: Although rate cuts have begun, the recent high-rate environment has discouraged potential sellers, especially those who would need to borrow to upgrade. Some owners are locked into cheaper loans and are reluctant to give up their current interest rate for a more expensive one.
3. Construction pipeline bottlenecks: New housing completions have slowed significantly due to labor shortages, cost blowouts, and lengthy planning delays, limiting the flow of new homes to the market.
4. The wait-and-see effect: Many owners are waiting for clearer signs of economic stability, such as further rate cuts or stronger consumer confidence, before listing their homes.
5. Off-market sales and non-traditional selling channels: The rise of off-market sales and the use of social media, agent databases, and buyer groups for transactions have reduced the visibility of total listings.

Why sellers have the upper hand in today's market

Given the current market conditions of high demand and low supply, sellers are in a strong position. The imbalance between the number of buyers and available properties means that those who do list their homes can expect strong interest and potentially higher sale prices. Here are a few reasons why sellers have the upper hand:

• Auction clearance rates: These are holding above 65%, showing that buyers are competing hard for available stock.
• Days on market: Properties are selling faster, particularly in tightly held areas.
• Minimal discounting: Many vendors are achieving close to their asking prices, reducing the need for price negotiations.

Additionally, underlying demand remains robust due to high net overseas migration, stable employment conditions, and rising rents, which are pushing more renters toward purchasing. This sustained demand, combined with limited competition from other vendors, creates an ideal environment for sellers.

Preparing your home for a profitable sale

To make the most of the current market conditions, it's essential to prepare your home for sale properly. Here are some tips to ensure a profitable sale:

• Enhance curb appeal: First impressions matter. Ensure your home looks inviting from the outside with well-maintained landscaping and a fresh coat of paint if needed.
• Declutter and depersonalize: Remove personal items and excess clutter to help potential buyers envision themselves living in the space.
• Make necessary repairs: Fix any obvious issues that could deter buyers, such as leaky faucets, cracked tiles, or broken fixtures.
• Stage your home: Consider hiring a professional stager to arrange furniture and decor in a way that highlights your home's best features.
• Professional photography: High-quality photos can make a significant difference in attracting buyers online. Invest in professional photography to showcase your home in the best light.

Future outlook: what to expect in the coming year

Looking ahead to FY2026, the outlook for property listings remains cautiously optimistic. While listing volumes may pick up modestly during the spring selling season, a sharp rebound is unlikely without significant changes such as substantial interest rate cuts, a lift in new housing completions, or policy changes to encourage selling activity.

Tight stock levels are expected to persist, supporting continued price growth and maintaining favorable selling conditions well into FY26. The February, May, and August rate cuts have helped stabilize market conditions, but many potential sellers remain on the sidelines, waiting for greater certainty around price growth and buyer activity.

As we move into spring, improved buyer enquiry and the expectation of further rate cuts may entice more vendors to act. However, any increase in supply is likely to be gradual rather than dramatic, keeping the market firmly in seller’s territory for the foreseeable future.

The current Australian property market presents a rare alignment of conditions that strongly favor sellers. With low listings, high demand, and rising prices, now is the perfect time to list your home and take advantage of this unique opportunity. By preparing your home effectively and understanding the market dynamics, you can achieve a profitable sale and make the most of this seller's market.

DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.