New home listings slow but stock well above average

NO one wants to catch a falling knife.

As Australian house prices tumble and buyers shy away from the market, the number of homes available for sale has soared in almost every capital city.

In Adelaide, total available stock was 25.1 per cent above the five-year average in the four weeks to November 8, according to property data firm Cotality.

In Brisbane, listings were 24.4 per cent above average and, in Perth, they were eight per cent above average.

§ Melbourne home values fall at the slowest pace

The mid-sized capitals, where supply most exceeds demand, were also where prices were falling the fastest.

In October, the median Perth dwelling value dropped 1.7 per cent and Brisbane prices retreated two per cent.

But, in Melbourne, the rate of decline slowed to 0.8 per cent, the shallowest fall of the five major markets.

In contrast with the rest of the country, the Victorian capital had 5.3 per cent less stock available for sale than its average.

"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," Cotality head of research Gerard Burg said.

"A similar transition in other cities should eventually slow the declines elsewhere."

But signs of a recovery are still a long way off.

The Reserve Bank's latest rate rise - taking interest rates to an 18-year high - will further reduce buyer purchasing power.

The Federal Government's Budget tax changes continue to affect investor sentiment.

"A recovery in housing market conditions is unlikely until buyers have the confidence and financial capacity to return to the market," Burg said.

"Affordability and investor policies are likely to remain constraints, meaning it is likely that rate cuts from the Reserve Bank will be necessary, which currently appears unlikely before the second half of 2027."

§ New listings slow as properties stay on the market longer

Although total properties for sale were rising in most markets, new listings were actually slowing.

In Brisbane, new listings declined 12.4 per cent over the year while the number of properties for sale increased 59.5 per cent.

The discrepancy is down to listings staying on the market for longer.

In October, the median national property was on the market for 41 days, compared with 24 days a year earlier.

Lending figures, set to be released by the Australian Bureau of Statistics on Wednesday, should show a further fall in home loans taken out by investors in the September quarter.

New home loan commitments are 27 per cent below their November 2025 peak, largely due to the steepest fall in investor lending on record, figures released by the RBA showed.