One million Australians consider selling their home each year, but ultimately back out of listing their property for sale, research reveals.
Data from realestate.com.au shows that 1.8 million Australians are looking to sell at any one time. A total 41% of those are first time sellers, while 59% are experienced sellers.
Four in five sellers are also buyers, which equates to 1.5 million – up from two in three in 2024. At the other end of the spectrum, 4.1 million Australians are looking to buy.
Lots of Aussies are on the move trying to buy and sell homes at the same time. Picture: Getty
These fence-sitting sellers struggling to decide when the time is right to make a move and list their home for sale are only adding to the nation’s housing crisis, with more homes desperately needed on the market.
New analysis by the Housing Industry Association reveals that the nation is already sitting at a 1.9 million home shortfall if it wants to get housing affordability to a level where the average single-wage earner could afford a home.
In a bid to understand why homeowners who are ready to make the move may be holding off, Mortgage Choice asked homeowners about their selling motivations to simplify the complex and costly process of buying and selling a home.
Seven in 10 potential sellers said they want the flexibility to buy before they sell, and that the complexity and stress involved in the buy-sell process were major concerns for the sellers.
Over half (51%) of those looking to sell would feel more confident with a trusted professional to guide them through the process, and one in three want clear information about the costs and fees involved.
Seller paralysis
Seller paralysis is behind a critical shortage in property listings.
Brisbane’s Tailored Buyers Agents founder Leanne Spring notes that the 'fear of being out' (FOBO) was freezing listings in Brisbane, particularly in the $1 million to $2 million price sector. Addresses in the 10km ring from the CBD are yielding the least number of listings, she says.
Data from SQM Research shows that the total number of listings in Brisbane declined 11.6% in the 12 months to August 2025. This is the most substantial fall in listing numbers across all capital cities except Darwin.
Buyers are afraid to be out of the market. Picture: Getty
“This squeeze on all listings aligns with our own experience, however, there’s a disproportionate lack of listings in the $1 million to $2 million price point that is really causing challenges,” Ms Spring says.
She blames the listing drought on an unprecedented market paradox.
“Extraordinary value gains across Brisbane, especially in the past quarter, have owners worried about selling their home, only to be left out of a runaway market they cannot afford to buy back into.”
Moving between homes
In an attempt to address the issue, the Mortgage Choice Freedom Move has been launched. Designed for homeowners who want to stay put rather than get caught in the buy or sell first drama, the loan product and comparison tool is now available through Mortgage Choice brokers.
Built by Athena and powered by real-time PropTrack data, Freedom Move Modeller helps sellers understand detailed pros and cons, timelines and costs, as well as the impact of market conditions, so they can decide on the best path forward when buying their next property.
Mortgage Choice chief executive (CEO) Anthony Waldron says the bridging solution is designed to simplify the complex and costly process of buying and selling a home.
“The data is clear. Australians need a new way to move between homes," he says. "Not only should making your next move be less complex and stressful, but our research also found that although sellers want the flexibility to buy before they sell, 46% aren’t familiar with bridging finance, and 51%of homeowners view it as an expensive last resort."
Athena co-founder and CEO Nathan Walsh adds that the finance product delivers enhanced borrowing power.
Mortgage Choice chief executive Anthony Waldron says a bridging solution can help simplify things. Picture: supplied
“The product’s flexible terms also give consumers up to 12 months to sell their old property with the option to capitalise the interest, meaning they make no repayments on the bridge debt itself.”
Priced out
Given the strong growth in the housing market, price jumps are fast, which can price sellers out of the market in just a few months.
Ms Spring points out that if you choose to sell a $2 million property today, you will need to find an extra $70,000 in just three months to buy the same calibre home.
“Factor in that sell-out, buy in transaction costs such as stamp duty, agent fees and legal expenses can be $100,000-plus, and it’s only compounding the hesitancy,” she says.
As a result, owners are electing to stay put rather than sell. Some sellers are scared of being left homeless if they sell.
“This isn’t a demand problem – it’s a supply crisis driven by seller psychology,” Ms Spring explains.
Ms Spring urged buyers to have their finance pre-approved, have conducted thorough suburb research and be ready to make competitive offers within days of a property hitting the market to have a chance of securing a home quickly.
Successful transactions increasingly involve off-market sales to pre-qualified buyers. These transactions often involve genuine seller motivation (relocation, downsizing, financial necessity), buyers selling to pay premium prices for limited stock, and extended settlement periods to allow sellers time to secure replacement properties.
This article first appeared on Mortgage Choice and has been republished with permission.
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