More stock, fewer sales: Transaction volume slumps 20%

According to Cotality’s latest data, total advertised stock rose 19.1 per cent, and homes were accumulating faster than buyers were purchasing them, despite new listings being 7.9 per cent below a year ago.

Cotality research director Tim Lawless said softer market conditions had pushed median days on market to almost six weeks.

He said days on market had climbed from a national average of 26 days 12 months ago to 41, while the capitals had reached their longest sale period of the past five years at 39 days.

“Spring normally brings more activity, but we’re seeing fewer new listings and a growing number of properties sitting on the market. That’s not an encouraging combination for sellers,” Lawless said.

While a variety of factors contributed to the slower market, such as school holidays and football finals, Lawless said they don’t explain the full extent of the slowdown.

“The bigger issue is that buyers are finding it harder to commit. Higher interest rates have reduced borrowing capacity, household budgets are under pressure and confidence is weak,” Lawless said.

“Even people who are in a position to buy may be reluctant to make a decision while values are falling.”

Former booming capitals lose momentum

Nationally, home values fell 3.7 per cent over the quarter, while capital cities declined 4.3 per cent over the same period.

After benefiting from strong growth in recent years, the tide has begun to turn for Brisbane and Perth, according to Cotality’s data.

Brisbane and Perth have moved from growth to the sharpest value declines among the capitals.

The smaller capitals matched Sydney’s 1.4 per cent value decline over the month, the most pronounced fall among the major markets.

Over the quarter, the pair of mid-sized capitals fell by 4.7 per cent.

Lawless said the rapid deterioration in Brisbane and Perth showed how quickly conditions can change when demand weakens.

“Brisbane and Perth have gone from markets where buyers had very little choice and properties were selling quickly, to conditions where listings are rising and with less competition, buyers have more time to make a decision,” he said.

Despite strong year-on-year results, Lawless said most of the pair's growth occurred in early 2026, and the current outlook was less positive.

“The more recent figures show a market that’s become much more challenging for vendors, particularly those expecting to achieve the prices they might have expected to secure six or 12 months ago.”

Additionally, Lawless said the property market’s outlook for the remainder of 2026 would likely depend on the RBA’s remaining cash rate meetings and its responses to incoming inflation data.

With four rate rises already taking place and more potentially on the way, Lawless said the market would continue to face substantial headwinds through the end of 2026.

“Lower property prices will eventually help improve affordability, but that benefit is being offset by higher borrowing costs. Until households have more certainty about interest rates and their financial position, it's difficult to see a sustained recovery in buyer demand.”