Low Listings, Weak Auctions: What's Really Happening in the Property Market
If you've been house-hunting lately, you might feel like something doesn't add up. Stock is tight, especially in the good suburbs, yet homes aren't flying off the shelf, and auctions aren't the frenzy they used to be. So what's going on?
As a mortgage broker, I'm speaking to buyers and sellers on both sides of this every week, and the short answer is: uncertainty. Not a lack of demand, not a lack of stock, but a general sense of "let's wait and see."
Sellers Are Sitting Tight
Across Sydney and beyond, plenty of vendors who'd normally list are choosing to hold off. Nobody wants to sell into a soft market if they don't have to, especially with the colder months and school-term life keeping everyone a bit distracted. That's kept listings historically low.
Auctions Are Telling Their Own Story
Recent auction clearance rates have slipped into the high 40s across the combined capitals, some of the weakest results in years. Anything under 55 per cent generally means buyers hold more of the cards. More properties are being passed in or pulled from auction altogether, which tells you sellers' price expectations haven't quite caught up with where buyers are sitting.
Why Isn't Low Supply Pushing Prices Up?
It's a fair question. Normally, less stock means more competition and higher prices. But right now, buyer demand has softened too, thanks to higher borrowing costs, cost-of-living pressures, and a general dose of caution. Low supply is propping values up rather than sending them soaring. It's also worth remembering conditions aren't uniform. What's happening in Sydney or Melbourne isn't necessarily what's happening in Perth, Adelaide, or regional markets, so it pays to look at your specific area rather than the national headlines.
Where the Opportunity Sits
Here's what I keep telling my clients: quieter auction rooms and more cautious market conditions can create more room to negotiate, something we haven't seen much of in recent years. But that opportunity only counts if you're actually ready to act on it.
That means having your finances sorted before you start negotiating, not after you've found "the one." A strong pre-approval gives you confidence and leverage at the table. If you already have a loan, it's also worth a quick loan health check to make sure you're not paying more than you need to while you wait for the right property to come along.
Affordability and borrowing capacity are still the real deciding factors here, not the headlines. We covered more of this in our recent piece on the housing market downturn and what it means for buyers, if you'd like to dig deeper.
The Bottom Line
Low listings and weak auctions don't mean the market has stalled; they mean the smart move is preparation. Buyers who understand their borrowing power and walk in finance-ready are the ones best placed to take advantage of today's negotiating conditions.
Ready to make your move? For tailored advice or to discuss your buying strategy, contact KM Financial Services. If you really want to take a step ahead, feel free to call us on 0402 879 531 or book a free consultation today. We're here to guide you and help you secure the right property in this market.
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