//Preface//
Are Australian homes struggling to sell?
An increasing number of properties have been sitting on the market for months without buyers,
and experts have uncovered the real reason why.
Perhaps the real “bargain” opportunities lie in those unsold listings…

#01: More Properties Struggling to Sell as Buyers Refuse Overpriced Homes

Over the past year, the Australian housing market has shown an interesting trend: more properties are staying on the market for months, even more than half a year, with no buyers in sight.

According to SQM Research, as of August, the number of old listings in Sydney rose 22.1% year-on-year, Melbourne saw a 13.7% increase, and Canberra spiked by 64.3%. Meanwhile, new listings slightly declined.

This suggests buyers are still active, but many homes are simply “stuck” because they’re priced too high.

Louis Christopher, head of SQM Research, explained that sellers are being overly aggressive. Many set their prices unrealistically high after the market warmed up last autumn, only to be ignored by buyers.

Today’s buyers are savvy—they research market data and comparable sales to determine fair value. Once a property is overpriced, the market immediately responds by walking away.

Christopher added that some sellers price their homes based on personal needs, not market value. For example, a seller might want enough profit to fund the purchase of their next dream home. But the market won’t adjust to individual needs, and such mispricing leads to stagnation.

In some cases, agents contribute to the problem by promising inflated sale prices to win listings. When these homes fail to sell, the agents must then push the sellers toward reality with gradual price reductions.

As a result, many properties go through cycles of switching agents and dropping prices, wasting time and missing optimal selling windows.

#02: A Quiet Market Doesn’t Mean No Opportunities – Good Homes Still Sell Fast

Interestingly, while more homes are failing to sell, “forced sales” have actually dropped. Compared to last year, the number of listings marked as “urgent” or “mortgagee sales” has fallen by 20%, hitting the lowest level since records began in 2020. This suggests most homeowners aren’t under extreme mortgage stress and remain financially stable.

Following three rate cuts, many households have seen their repayment pressures ease.

So why are certain homes still unsold?

Buyer’s agent Nicole Jacobs says the main issue is the disconnect between sellers’ expectations and actual market values. She has seen some sellers go through two or three different agents before finally accepting reality.

Some properties also have inherent drawbacks—such as being near noisy roads, poor natural light, or requiring major renovations—that deter buyers even after price cuts.

On the other hand, high-quality standalone houses and rare properties in prime locations continue to sell quickly, often above market value. In other words, it’s not that the market is “dead”—it’s that good homes are hot, while average homes struggle.

Still, buyers shouldn’t automatically avoid long-listed properties. Experts suggest researching the property’s listing history, contacting former agents, and combining this with building and pest inspections.

If the price is adjusted to a fair level, such homes can present real bargain opportunities.

Buyer’s agent Michelle May observed that truly high-quality homes always attract competition. If a property has been sitting for months, it’s usually because the price is inflated or the quality doesn’t meet expectations.

Her advice: check comparable recent sales in the area to determine the property’s true market value.

Final Word

The current Australian property market is not in a complete stalemate—it’s more of a tug-of-war between sellers’ inflated expectations and buyers’ rational judgment.

For buyers, the key is to remain calm, analyze the market carefully, and focus on real value. In doing so, you may uncover great opportunities amid a complex housing market.