Good news for buyers – surge in homes hitting the market
Marc Adam • March 26, 2026
Farewell slim pickings?
If you’re in the market for a home, you may have noticed there hasn’t always been a whole lot of choice in recent months. Fortunately, it looks like property listings are really starting to pick back up. Here’s how to make the most of the increase in choice.
Sure, price is the obvious big barrier when it comes buying your first home.
But that’s often got a whole lot to do with a lack of supply (less supply than demand typically = higher prices).
And in fact, Westpac says supply shortages have been one of the most significant hurdles for Aussies trying to enter the property market, with one in four (26%) first home buyers saying a lack of listed properties was holding them back.
But the tide may be starting to turn.
According to SQM Research, new listings “surged” 48.6% nationally in February, marking the strongest monthly rise since spring 2025.
And new listings continued to climb in the four weeks to mid-March.
Let’s take a look at why a rise in homes listed for sale is a plus for home buyers, and how it could impact your buying plans.
Where listings growth is strongest
According to Cotality, March has seen new listings climb by 10% or more (year-on-year) in Melbourne, Brisbane, Hobart and Canberra.
Sydney (up 4.1%) and Adelaide (4.8%) have seen more modest growth in new listings, though the overall trend is upwards.
Only Perth and Darwin are bucking the trend, with new listings down 12.8% and 12.3% respectively compared to a year ago.
How does an increase in listings benefit home buyers?
Across our capital cities, the four weeks to mid-March saw a For Sale sign pop up in front of an extra 27,772 homes.
An increase in new listings offers several upsides for home buyers.
More homes on the market means more choice, so you may not have to compromise on your wish list of home features.
In addition, increased supply has the potential to keep a lid on price growth.
However, that doesn’t necessarily mean values will fall.
Listings are still 9.1% lower year-on-year. So we’re still not in a ‘balanced’ market where supply equals demand.
In fact, delaying your buying plans in the hope that home prices will soften could work against you.
SQM Research crunched the numbers and found that even if the Reserve Bank hiked interest rates by a further 0.25% by mid-year, capital city home values could still end the year 3.0% higher. Home values in several cities including Perth, Brisbane, Darwin and Adelaide could rise by at least 10%.
Long story short, it’s worth thinking about how you could benefit from increased supply right now, rather than postponing your buying plans.
What you can do as a home buyer
There are several ways you may be able to take advantage of an increase in property listings.
First and foremost, understand your borrowing power. This may have changed as a result of the March rate hike.
Talk to us to know how much you can comfortably borrow. It can drive your buying budget.
Next, keep an eye on local sales results and selling times. Values may not fall, but if homes start taking longer to sell, you could have more leverage to negotiate a discount.
Finally – and possibly most importantly – talk to us about having your home loan pre-approved.
Westpac research shows two-in-five home buyers point to rivalry with other buyers as a barrier to getting into the market.
Having pre-approval in place could give you a competitive edge over less organised buyers.
So get in touch about securing pre-approval for a loan that suits your needs – it’s about making the most of a market that could be starting to swing in your favour.
Disclaimer:
The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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Here’s what the federal government has planned ahead
How are you going with your mortgage?
Having loan pre-approval can be a smart move for home buyers. But the recent Reserve Bank cash rate hikes could leave your pre-approval in need of an update. There’s a lot to love about home loan pre-approval. It shows how much a bank will let you borrow for a home – that’s your ‘borrowing power’. Pre-approval also indicates you’re a serious buyer, providing extra bargaining clout in price negotiations. And while pre-approval typically only lasts for three to six months, that can be sufficient time for many buyers to find their ideal home. But there’s a catch. Pre-approval is not a guarantee. Rather, it is a guide of what you can borrow based on circumstances at the time pre-approval was issued. And the two rate cash rate hikes the Reserve Bank of Australia has implemented this year may have chipped away at your borrowing power. That can make it worth reviewing your mortgage pre-approval. Here’s what to weigh up. Your borrowing power may have altered Your borrowing power, also known as ‘borrowing capacity’, is a key factor when it comes to buying a home. It’s the amount a bank is willing to lend for a home loan, and it’s based chiefly on your income and living expenses. However, interest rates also play a role. A rise in interest rates will mean higher repayments, and this has the potential to reduce your borrowing power. As an example, Canstar says a solo home buyer on the average full-time wage ($106,950) will be able to borrow around $12,000 less as a result of the March 2026 rate rise. Add in the 0.25% February rate hike, and that same home buyer could be looking at a $25,000 cut to their borrowing power. A couple on the a verage wage may have seen their combined borrowing power drop by $49,000 since February. That’s why it’s so important to call us to understand your true borrowing power as it currently stands. Yes, there are online calculators available. But these may not consider every aspect of your personal situation. The risk of outdated pre-approval Taking a ‘she’ll be right’ approach to your loan pre-approval could work against you. You may find, for example, that after negotiating a great price on a place you’re keen to buy, you struggle to get the home loan you need. Worst case scenario: you risk being the winning bidder at auction but failing to get finance to complete the purchase – a situation that could mean losing your deposit. Here too, a call to us can confirm if you are good to go for a home loan before you start putting money on the table for a property purchase. How to boost your borrowing power The good news is that there are steps you can take to potentially boost your borrowing power – no matter what interest rates are doing. Here are a few ideas to get started. Review household expenses – even a small change in non-essential spending can make a difference. Lower the limit on your credit card – lenders often base your borrowing power on the assumption your credit card is maxed out. Think about asking your card issuer to trim your credit limit. Or close it altogether. Clear other debts – a lingering car loan, the remains of student debt, and even an ongoing buy now, pay later balance can impact your borrowing power. Knuckling down to clear the slate could see you rewarded with increased borrowing capacity. Know that rate matters – the rate you pay isn’t the sole decider of whether a loan is a good match for your needs. But the lower the rate, the more you may be able to borrow. Talk to us for up-to-date loan pre-approval Successful home buying doesn’t have to mean borrowing as much as you can. However, it makes sense to start the ball rolling with a clear idea of your current borrowing power. Talk to us to know if your loan pre-approval is out of date, or to organise new pre-approval on a loan that’s well-matched to your needs. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.