Australia's property listings hit a one-year high: what more homes for sale means for first home buyers

The number of homes for sale across Australia has just hit its highest level in more than a year. New data from SQM Research shows national listings climbed 12.4% in July to almost 279,000 dwellings, sitting roughly 23% above where stock levels were a year ago. For first home buyers who have spent the last few years competing over a thin trickle of listings, a market with meaningfully more homes to choose from is a genuine shift worth understanding.

What the data actually shows

SQM Research tracks how many properties are advertised for sale nationally each month. The July figures show growth in both fresh listings hitting the market and older listings that have been sitting unsold for a while, a combination that typically shows up when buyer demand is softening relative to the number of sellers willing to test the market.

At the same time, SQM's Weekly Asking Prices Index for the week ending 4 August recorded capital city house asking prices easing around 1.5% over the month, with unit asking prices down a smaller 0.2%. Combined dwelling asking prices are still roughly 6.2% higher than this time last year, so this is a cooling from a high base rather than a return to previous price levels.

Why supply is building up

• More properties taking longer to sell: when homes sit on the market longer, the count of active listings grows even if the pace of new listings hasn't changed much, because fewer properties are being cleared each week.
• Higher borrowing costs weighing on demand: with the cash rate sitting at 4.35%, some buyers are taking longer to commit, waiting for more clarity on where rates head next before they act.
• Sellers testing conditions before locking in a price: some vendors appear willing to list and see what the market offers, rather than holding off, which adds to the stock of homes actively for sale.

What this means for first home buyers

More listings generally mean more choice and, potentially, a stronger negotiating position. That doesn't automatically translate into a home becoming affordable for every buyer, and your lender will still assess your own borrowing capacity and deposit on their own merits regardless of how the broader market is moving. A few practical points worth thinking through:

• With more properties to inspect, there is less pressure to rush a decision on the first home that fits your budget. Take the time to compare options rather than feeling forced to act at the first open home.
• Asking prices easing slightly can open room for a more measured offer, particularly on properties that have been listed for a while. Working with a buyer's agent or your own research on recent comparable sales can help you gauge a fair starting point.
• A softer market is a reasonable moment to get your finances in order (pre-approval, deposit, understanding your grant and scheme eligibility) so you can move confidently when the right property comes up, rather than scrambling once you find it.

Market conditions can shift again once the Reserve Bank's next rate decision lands, so this is a snapshot of where things stand today rather than a guarantee of how long more generous supply will last.

Run the numbers

Use these tools to work out how a shifting market applies to your own situation:

• Am I Ready to Buy? - work through whether your finances and timeline line up with buying into a market that currently has more homes on offer.
• Borrowing Power Calculator - check what you could realistically borrow before you start comparing the extra listings now available.
• Rent vs Buy Calculator - see how a softer asking-price environment changes the numbers if you have been weighing up buying now against continuing to rent.