How has the spring selling season played out?

Typically, spring is a busy period for Australian real estate, as historic sales figures demonstrate:

But as we near the end of spring, how did this year’s selling season impact the market?

While some areas maintained their hot streak, others cooled slightly under rising stock levels and cautious buyer sentiment. Here’s a closer look at what this season revealed for buyers, sellers, and the market's future.

Buyer-Seller Dynamics

Spring traditionally brings a surge in listings, and this year was no exception. Nationally, new property listings rose by 6.2% through October, giving buyers more choice in most major cities. In addition, preliminary data from realestate.com.au reveals that distressed listings – homes listed by sellers under financial stress – increased significantly, particularly in New South Wales. This trend introduced more competitively priced options to the market, offering opportunities for strategic buyers as interest rates stayed high.

Despite the influx of listings, the market remained complex. Many sellers in oversupplied regions such as Sydney and Melbourne faced the need to recalibrate their expectations, as increased competition reduced their leverage. Sydney’s listings are close to 30% above the five-year average, with a slower pace of growth in outer regions like the Baulkham Hills, Hawkesbury, and city fringes. Melbourne, similarly, saw record listing levels since 2018, leading to muted price growth across high-supply areas such as the Mornington Peninsula and inner Melbourne.

The Stronghold Markets: Brisbane, Perth, and Adelaide

In contrast, the picture looked quite different in cities like Brisbane, Perth, and Adelaide, which continue to experience tight supply and high demand. These markets have maintained significant price momentum, fuelled by affordable entry points, strong rental demand, and population growth. Listing shortages in these cities mean competition for properties remains fierce, creating a sustained seller’s market where prices have steadily risen.

Brisbane’s west, along with Perth and Adelaide’s metro areas, saw the strongest price increases of any Australian cities this season. With total listings in these regions up to 50% below the five-year average, buyer interest in available properties remained high. Population growth and relatively affordable housing have been key drivers, contributing to ongoing competition and price resilience. For sellers in these regions, the season presented favourable conditions, often resulting in multiple offers and sales exceeding price expectations.

What’s Next?

As the spring season draws to a close, market data highlights a mixed landscape across Australia. While increased listings provided buyers with more options, regional differences played a substantial role in shaping outcomes. In high-supply cities like Sydney and Melbourne, sellers faced the pressure of heightened competition, driving some to adjust pricing expectations to align with buyer caution and maintain transaction momentum. Conversely, constrained supply in Brisbane, Perth, and Adelaide underscored the strength of these markets, which continued to see robust buyer interest and firm price growth, supported by favourable demographic trends and limited availability.

Looking ahead, the market's performance in 2024 will likely hinge on broader economic factors, including interest rate movements and housing affordability. In undersupplied areas, the high demand could keep prices resilient. Meanwhile, cities with rising stock levels might see gradual adjustments, offering buyers more leverage. For both buyers and sellers, staying attuned to these evolving dynamics will be crucial to making informed decisions in the months ahead.

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