Property market snapshot reveals mixed picture across the country

Rising interest rates and post-budget jitters have taken the steam out of the property market, but a new report has revealed just how varied conditions remain across the country.

A new market snapshot report breaking down property price movements, listings volumes, clearance rates and the typical number of days a home is on the market before it’s sold shows where buyers are still facing tough competition, and where they have more choice.

Angus Moore, executive manager of economics at realestate.com.au and author of the report, said while activity has pulled back on a national level, it’s still too early to see the full impact of the federal budget – which included a swathe of major changes to housing taxes for investors.

“With the budget changes announced only a month ago, and not yet legislated, it is still too early for those effects to have meaningfully showed up in prices or market outcomes,” Mr Moore said.

Jump ahead to see:  

• Property price snapshot and forecasts
• Listing volumes in each state
• Clearance rates in major auction markets
• Typical days on market

Under changes announced in the budget, negative gearing will be scrapped for investors purchasing an established property, and the 50% capital gains discount will be replaced with an inflation-indexation model.

It comes as new property forecasts show home prices are expected to tread water this year, with declines of 3-4% in Sydney and Melbourne offsetting growth in other capital cities.

Three consecutive interest rate hikes, uncertainty surrounding the budget measures and increasing stock levels have already dampened market momentum.

A new report has revealed how property market metrics are playing out across the country. Picture: Getty

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But Mr Moore said any correction is likely to be short-lived, with growth then projected in all major capital cities over 2027.

Here’s a snapshot into the various market influences playing out across the country.

Property price growth and forecasts

Home price growth has stalled across the country, driven by falls in Sydney and Melbourne.

Even the fast-growing markets of Brisbane, Perth and Adelaide have seen conditions slow, Mr Moore said.

“Notably, Perth saw prices down 0.1% in May. While a very modest decline, it represents a clear slowing in prices after an extremely strong 2025, and the first monthly decline since late 2024,” he said.

“And while prices were up modestly in Brisbane and Adelaide, it was the slowest month of growth for both since late 2022 to early 2023.”

It comes on the back of rapid price growth across these less populous states, with Perth values still sitting more than 20% higher than a year ago, while Brisbane (16.4%) and Adelaide (13.4%) also recorded double-digit price growth.

In fact, WA and Queensland account for the top 10 performing markets over the past 12 months according to the latest PropTrack Home Price Index.

Looking ahead, prices in Sydney and Melbourne are expected to cool between 3% and 4% this year, before returning to modest growth of between 4% and 6% in 2027.

Property price forecasts

Source: realestate.com.au Property Market Outlook

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In the smaller capital cities – where home prices have roughly doubled in just five years – prices are expected to return to a more steady pace of growth.

For in-depth property forecasts, read the realestate.com.au Property Market Outlook report here.

More homes for sale in some markets, others remain tight

More properties are hitting the market, but that doesn’t mean buyers are spoilt for choice.

When looking across the country, the volume of new homes listed for sale in May rose 2% nationally compared to a year ago, as more properties hit the market in smaller capital cities like Brisbane, Darwin and Perth.

While Sydney and Melbourne recorded a slight dip in new listings during May, the total number of listings - which captures all homes on the market, not just those newly listed for sale - shows buyers have more choice.

Mr Moore said total listings in Sydney and Melbourne are around 10-15% higher than what is typical for this time of year, though choice is far more limited elsewhere.

“Stock on market remains solid in Sydney and Melbourne,” Mr Moore said.

“In contrast, choice for buyers is limited in Brisbane, Perth and Adelaide, with total listings down circa 40% on prepandemic levels in all three cities.”

Auction clearance rates cool, but homes are still selling quickly

Rising interest rates, market uncertainty and increased listings volumes have seen clearance rates fall in the major auction markets of Sydney and Melbourne.

Data from PropTrack shows the auction clearance rate has remained below 50% in Sydney since mid-March, and sub-60% in Melbourne over the same period.

“Stock on market and choice for buyers remains solid in Sydney and Melbourne. This, coupled with rate hikes, has contributed to softening auction clearance rates,” Mr Moore said.

But the ‘days on market’ metric remains low in both cities, he said, with a typical home selling in 30 days.

“That figure is unchanged from April in Melbourne and up just a day in Sydney.”

How quickly homes are selling:

"Market conditions are tighter outside of Sydney and Melbourne, where limited stock on market has seen sales times fall substantially in recent years,” Mr Moore said.

In some suburbs, homes are being snapped up within days of hitting the market.

Over the 12 months to June, homes in Woodvale and Edgewater in Perth’s north west were on the market for just 10 days before selling, with homes across Darwin, Melbourne’s Mornington Peninsula, outer Brisbane and Hobart also selling within two weeks.

Top 10 suburbs - days on market: