The Bittersweet Spring of Sydney’s Housing Market

As we enter the peak buying and selling season in Sydney, the city’s housing market is exhibiting some peculiar trends. A recent report from Cotality reveals that while total listings have risen by 14.4% since August 2025, new listings are down by 13.2%, marking an 850 fewer newly listed homes compared to this time last year.

This discrepancy may seem counterintuitive, given the typical surge in spring sales. However, experts attribute it to a complex interplay of factors, including economic uncertainty and vendor hesitation. Potential sellers are wary of listing their properties during a period of price downturn, resulting in softer new listing conditions. Gerard Burg, head of research at Cotality, suggests that this trend may continue, stating “it’s looking like it’s going to be a cooler spring than in previous years.”

The shift towards a buyer’s market has been particularly pronounced in areas where prices have declined the most – the eastern suburbs and northern beaches, which have seen drops of 38.9% and 24%, respectively. Some vendors, such as Colin Brown and Christine Jeffries, who are listing their inner west home, are motivated by lifestyle changes rather than speculation or profit. Their decision to sell in spring is driven by a desire for a bushland setting near Newcastle, where they have already purchased a property.

This trend of “lifestyle-driven” sales raises an interesting question: what does this mean for the broader market? As vendors become more cautious and buyers remain on the sidelines, waiting for quality properties to emerge, we may see a prolonged period of low listing levels. This could perpetuate a cycle where prices continue to fall, further eroding vendor confidence.

However, some experts, such as James Cahill from Belle Property Glebe, believe that once rate expectations stabilize, buyers will regain their enthusiasm. “Good homes will always outperform the broader market,” he says. Yet, with the Reserve Bank’s stance remaining uncertain, it remains to be seen when and if buyer confidence will return.

The Sydney real estate landscape is characterized by varying trends across different regions. While some areas, such as the inner west, are experiencing increased activity from buyers’ agents, others are lagging behind. Markets in the outer south west region and Blacktown have been less affected, with fewer new listings compared to last year.

Michelle May, principal of Michelle May Buyers Agents, observes that vendors remain concerned about securing their desired price, resulting in lower-than-normal listing levels for this time of year. Leanne Pilkington, CEO of real estate group Laing+Simmons, notes that buyer’s agents are active in certain areas, but even in these markets, the lack of quality listings remains a challenge.

Ultimately, as we navigate the complexities of Sydney’s housing market, it becomes clear that this spring season will be anything but typical. The interplay between economic uncertainty, vendor confidence, and regional trends has created a dynamic landscape where buyers and sellers must adapt to changing circumstances. As prices continue to fluctuate, one thing remains certain: only time will tell when the property cycle turns.

Vendors like Colin Brown and Christine Jeffries are taking calculated risks by listing their properties in an attempt to secure the best possible price for their homes. Their decision serves as a reminder that even in a buyer’s market, the dynamics of supply and demand remain in constant flux.