Despite robust market fundamentals, including population growth, rising rents and solid price growth, new listings for residential properties across Australia remain constrained. This persistent and widespread decline suggests the market is being shaped by structural, rather than seasonal, factors.
LJ Hooker Head of Research & Business Intelligence Mathew Tiller outlined his Top 5 reasons why listings are down:
- Limited upsizing and downsizing activity
“Many homeowners are choosing to stay put, largely due to a lack of suitable alternatives. Downsizers are finding it difficult to secure the right next home, while upsizers are often hesitant to move, given the higher costs associated with today’s mortgage environment.”
- High interest rates mean cautious sellers
“While rate cuts have begun to emerge, the recent period of high interest rates has discouraged many potential sellers, particularly those who would need to borrow to upgrade. Some homeowners remain locked into low-cost loans and are understandably reluctant to give up their favourable interest rate in exchange for a more expensive one.”
- Construction pipeline bottlenecks
“Although the number of dwellings has increased over the past decade, the pace of new housing completions has slowed significantly. Builders are still grappling with labour shortages, rising costs and lengthy planning delays.”
- The wait-and-see effect
“Many property owners are deferring listing their homes, waiting for clearer signs of economic stability, such as further rate cuts or a boost in consumer confidence. This hesitation has contributed to a frozen market effect, where even those with strong equity are choosing to remain on the sidelines.”
- Off-Market sales and non-traditional selling channels
“Not all homes are being marketed through traditional channels, with the rise of off-market sales meaning a portion of stock is transacted without ever appearing in public listings. Increasingly, properties are being promoted through social media, agent databases and private buyer groups, rather than mainstream portals, reducing the overall visibility of listings.”
The good news is Australia’s housing market is offering a rare window of opportunity for sellers.
“Listings remain low, while buyer demand is strong and prices continue to rise, creating a powerful combination heading into spring,” Mathew said. “Those who list early are likely to face less competition and attract serious buyer interest.
“At the same time, strong population growth, stable employment, and rising rents are pushing more people to buy, yet new listings remain well below average. This supply–demand imbalance gives sellers a clear advantage.
“With further rate cuts expected to boost borrowing power, now is the time to act!”
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