Low listings: What spring’s weaker-than-expected selling season means for investors

# The data: fewer new listings than expected Recent Cotality data found just over 33,000 properties newly listed in the four weeks to August 23. That result is 8.2% below the five‑year average for the period and 2% below the same period in 2025. The typical spring surge in vendor activity has been weaker this year.

# Where supply dropped most Listing declines are uneven across capitals. Sydney led the fall, with listings more than 14% below average over the four‑week period. Melbourne was down by more than 9%, and Brisbane by about 5%. Adelaide is the notable outlier, with listings roughly 4% above average, reflecting a slower vendor response to the weakening demand in that state.

# Why vendors are holding back Cotality's head of research, Gerard Burg, describes a spring that is likely cooler than prior years. Key reasons cited in the data and commentary:

• Home values have been in a national downturn for four months. That weakens seller confidence.
• The reversal of RBA rate cuts in 2025 tightened borrowing conditions compared with last year.
• Affordability constraints, higher fuel costs and poorer consumer sentiment have reduced buyer activity.

Combined, these factors are prompting more owners to delay listing until conditions look firmer.

# Inventory versus stock on market Although new listings have faded, Burg notes the total stock of properties available for sale has increased in recent months in some areas. That indicates sellers who listed earlier remain on the market, while fewer fresh properties are being added. The result is a mixed picture: supply has not collapsed, but the pipeline of new options is thinner.

# What this means for investors now Buyers and investors should adjust expectations for the spring selling season:

• Negotiation power: Where buyers are active, those sellers who must transact will generally be at a disadvantage. Investors with readiness to transact can use that leverage.

# Practical next steps for investors

• Monitor listings flow weekly rather than relying on historical seasonal patterns. A weaker-than-usual spring can pivot quickly if rates or sentiment change.
• If you are ready to buy, maintain finance pre‑approval and a clear offer strategy so you can move when suitable properties appear.
• If you're selling, be realistic about timing and pricing: the spring uplift may be muted, and motivated buyers hold more negotiating power.

# Bottom line Spring has arrived without the usual surge in new listings. Lower vendor participation combined with weaker buyer demand and tighter borrowing conditions means a more subdued market. Investors who can act selectively and quickly will be better positioned than those who expected a typical spring bounty of choices.