Homes available for sale have risen well above the five-year average across several Australian capital cities as falling house prices and weaker buyer confidence leave properties on the market for longer.
Adelaide recorded the highest increase among the major markets, with total available stock 25.1 per cent above its five-year average in the four weeks to November 8, according to property data firm Cotality. Listings were 24.4 per cent above average in Brisbane and 8 per cent higher in Perth.
The cities with the greatest excess of supply were also experiencing the sharpest falls in prices. Perth’s median dwelling value fell 1.7 per cent in October, while Brisbane prices dropped by 2 per cent.
Melbourne provided a contrast, with values declining by 0.8 per cent, the smallest fall among the five major markets. Available stock in the Victorian capital was 5.3 per cent below its average.
Gerard Burg, Cotality’s head of research, said the closer balance between supply and demand in Melbourne was helping to limit the decline in values.
“A better balance between available supply and demand in Melbourne means home values in the city are falling at the slowest pace of the major capitals,” he said. “A similar transition in other cities should eventually slow the declines elsewhere.”
However, Mr Burg said any recovery remained distant. The Reserve Bank’s latest interest rate rise, which took borrowing costs to an 18-year high, is expected to put further pressure on buyers’ purchasing power, while federal budget tax changes continue to weigh on investor sentiment.
“A recovery in housing market conditions is unlikely until buyers have the confidence and financial capacity to return to the market,” Mr Burg said.
He added that affordability and investor policies were likely to remain constraints, meaning rate cuts from the Reserve Bank would probably be needed. Such cuts currently appeared unlikely before the second half of 2027, he said.
New listings slow as properties remain on the market
Although the total number of properties for sale was increasing in most markets, the flow of new listings was slowing. Brisbane recorded a 12.4 per cent annual decline in new listings even as its total stock rose by 59.5 per cent.
The difference reflects homes staying on the market for longer. The median property nationally was listed for 41 days in October, compared with 24 days a year earlier.
Figures due from the Australian Bureau of Statistics on Wednesday are expected to show a further fall in investor home loans during the September quarter. New home loan commitments are already 27 per cent below their November 2025 peak, with the decline largely attributed to the steepest fall in investor lending on record, according to figures from the Reserve Bank.
