Spring selling faces unusual squeeze

LJ Hooker research head Mathew Tiller predicts a competitive spring selling season

Sellers banking on more rate cuts before putting their homes on the market may be lost in the crowd if they wait too long, as a national listings shortage sparks intense spring competition.

New data from real estate group LJ Hooker shows fresh listing volumes are 6.3 per cent below the 10-year national average, leaving buyers to battle it out for fewer homes despite improved borrowing capacity on the back of a 75 percentage point fall in interest rates.

Hobart recorded the biggest drop of 16.5 per cent fewer listings in FY25 compared to last decade, then Adelaide (-16.3 per cent) and Brisbane (-10.5 per cent), according to LJ Hooker’s Australian Listings Report 2025.

A 10-year analysis shows listings are down across the nation

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Outside of the capital cities, regional Queensland had the biggest 10-year drop for new listings, down 15.8 per cent, followed by WA (-11.7 per cent).

Only Sydney (up 1.9 per cent) and Melbourne (-0.10 per cent) matched or exceeded their decade-long averages.

Auction clearance rates in the two cities had already edged above 70 per cent, with strong buyer demand expected to continue through spring.

LJ Hooker’s head of research and business intelligence, Mathew Tiller, said many vendors were sitting on the sidelines in anticipation of more rate cuts from the Reserve Bank of Australia (RBA), hoping to cash in on stronger budgets among buyers.

Buyers are back in the market with increased borrowing capacity thanks to a cut in interest rates

“The shortage of listings suggests sellers are holding out for more rate cuts, looking to cash in on further borrowing capacity among buyers,” he said.

“But the Reserve Bank has shown caution in their decision making, making it hard to predict when more cuts will be made.

“Sellers who are holding off until the RBA makes its next move may become lost in the crowd, competing against more sellers in their neighbourhood.”

Further fuelling competition was the fast-tracking of changes to the federal government’s First Home Buyer Guarantee.

LJ Hooker’s Mr Tiller said sellers who list early will have an advantage

From October 1, price thresholds will be lifted and income caps abolished, giving more first-time buyers access to the market.

Mr Tiller said sellers who listed sooner rather than later would be best placed to cash in on a rush in demand.

“First-home buyers who previously sat on the sidelines now have greater access to the market.

“When you combine this with fewer listings and cheaper finance than a year ago, sellers who act early in spring will be best positioned to take advantage of heightened competition,” he said.

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