A flood of new property listings have hit markets across major capital cities to kick off spring, with data houses showing 15 to 17% increases compared to this time last year.

So what does a listings increase mean for a market? The short answer is more choice for buyers. And when there’s more choice for buyers, the power of sellers to get big results diminishes.

Numbers by capital

SQM research recently revealed Sydney had the most significant spike in new listings, recording the highest level for the month of August in more than 15 years. The month on month increase from July was 14.7%.

Year on year, the increase was 20.2%, meaning an extra 5500 homes up for sale than at the same point in 2023.

Melbourne recorded a monthly increase of 12.2% and a 22.8% rise in properties for sale compared to August 2023.

Canberra and Adelaide had increases of 10.7% and 9.1%. Brisbane listings were up 13% year on year. Only Perth had a fall in listings.

The big movements in larger cities coincided with a fall in annual listings across markets such as Perth and this meant rises in national listings volumes were not as high.

Buyer’s markets?

A number of property economists have claimed Melbourne is already a buyer’s market and that Sydney is likely to become one this spring. Adelaide and Brisbane are more evenly poised, but the heat is coming out of both cities for sellers.

What it means is that savvy investors will be more likely to be able to pick up properties for below market value, which is of course one of B Invested’s several key factors to consider when buying.

Less demand means lower prices and this could give investors a window of opportunity to enter good quality suburbs where markets are re-setting before another growth period.

Rate cut boost

Economists can’t seem to agree on when there might be an interest rate cut from the RBA, but most agree the next movement will be downwards as inflation continues to ease and the economy gets closer to a recession.

A recent report revealed the ASX had priced in 4 rate cuts in 2025, totalling a full basis point.

The likely fallout of one rate cut would be a return of some confidence and levelling out of the market, but multiple rate cuts would lead to a surge in demand and kick off fresh growth cycles in many areas.

If that was to play out, investors who nab a value deal now may find instant equity next year and the ability to turbocharge their wealth accumulation.

Distressed listings

Mortgage stress has weighed on a large proportion of Aussie households this year after the rate hikes between 2022 and now finally took their full toll. A series of rate cuts could turn the tables on listings because a decent proportion of homeowners on the brink of default would get enough relief to no longer have to consider selling.

The effect of those properties not coming to market would also put more price pressure on the available stock and lead to values rising again.

Time to take action

Values are flat while buyers wait for a rate movement and rents are still high. Now could be the best time to take up the investment opportunities available and create a positively geared portfolio with immediate value upside.