Australian House Sales Decline, Selling Times Increase Significantly

Australia’s spring property market has slowed significantly, with fewer homes changing hands and properties taking much longer to sell than they did a year ago.

Cotality’s October 2026 Housing Chart Pack estimates that 39,747 homes were sold nationally in September, representing a 20.9% decline compared with September 2025. The national median time to sell also increased to 41 days over the three months to September, up from 26 days a year earlier.

The slowdown is occurring despite fewer new properties entering the market. New listings were 7.9% lower than a year earlier and almost 12% below the five-year average, yet total advertised stock was 19.1% higher. This suggests properties are accumulating because buyers are taking longer to commit.

Higher interest rates remain one of the main reasons for weaker demand. Reduced borrowing capacity and higher mortgage repayments are forcing buyers to reassess budgets, while uncertainty around further price movements is encouraging some purchasers to take more time before making an offer.

For Melbourne’s western growth corridor, these conditions could increasingly resemble a buyer-favourable market. When properties remain available for longer, purchasers can often compare more options, arrange building inspections, review contracts carefully and investigate recent comparable sales without feeling the same pressure to make an immediate decision.

Longer selling periods can also strengthen buyers’ negotiating position. Properties that have remained on the market for several weeks may have vendors who are more willing to discuss price, settlement terms or other conditions, particularly where the seller needs to complete a transaction within a certain timeframe.

However, this does not mean every property will become heavily discounted. Well-located homes that are realistically priced and presented strongly can still attract competition. Market conditions can also vary considerably between neighbouring suburbs and different property types.

For sellers, the current environment makes pricing strategy increasingly important. Setting an asking price based on values achieved during stronger market conditions may result in a property remaining unsold for longer, particularly if comparable properties are being offered at more competitive levels.

Cotality’s data also indicates that vendor discounting across the capital cities has reached its highest level in five years, another sign that sellers are having to negotiate more aggressively to secure a sale.

Presentation and marketing may therefore become more important as listings compete for a smaller pool of active buyers. Sellers who prepare their properties carefully, respond to market feedback and price according to current comparable sales may be better positioned to achieve a successful result.

For first-home buyers, the slowdown could provide something that has often been missing from stronger markets: time. More days on market can allow buyers to complete finance checks and due diligence without the same fear that another purchaser will immediately secure the property.

Investors may also find opportunities where vendors become more negotiable, although higher finance costs mean a lower purchase price alone does not automatically make a property an attractive investment. Rental yield, holding expenses and long-term local demand remain important considerations.

Melbourne’s western growth corridor contains a wide range of established homes, townhouses and new developments, so conditions are unlikely to be identical across every suburb. Buyers should continue to assess supply, recent sales, rental demand and infrastructure developments at a local level.

Overall, the latest figures show that Australia’s spring market has shifted noticeably in favour of more cautious buyers. For Melbourne’s west, longer selling periods and weaker transaction volumes may create more room for negotiation and careful due diligence, while sellers increasingly need realistic pricing and a strong marketing strategy to compete.