More homes are available for sale across Australia while property prices are falling across most capital-city suburbs.
For home buyers, that combination is creating something that has been difficult to find in many Australian property markets: more choice, more time and greater negotiating power.
SQM Research reported 269,717 residential properties listed for sale nationally in August 2026. Although listings fell 3.3% from July, they remained 12.8% higher than August 2025. Adviser Voice
At the same time, Cotality found that 93% of capital-city suburbs recorded a decline in home values through winter, while homes were taking longer to sell and vendor discounting was increasing. Cotality
And the market has softened further since then. Cotality’s newly released September figures show 97% of capital-city suburbs recorded value declines over the three months to September. Cotality
So, does that mean buyers now hold all the cards?
Not quite.
Why Are More Property Listings Good for Buyers?
More property listings generally mean buyers have a larger pool of homes from which to choose.
When stock is limited and several buyers are competing for the same property, there can be pressure to make quick decisions or improve an offer to secure the home.
When more properties are available and demand is softer, some of that urgency can disappear.
For buyers, that may mean:
- Greater choice when comparing properties.
- More time to complete research and due diligence.
- Less pressure to make an immediate offer.
- More opportunity to negotiate on price or settlement terms.
- Greater willingness from some vendors to meet the market.
Cotality reported that advertised supply across most capital cities was already above both year-ago and five-year averages by the end of August. It also found homes were taking longer to sell. Cotality
That’s a noticeably different environment from a rapidly rising market where buyers can feel they’re chasing properties rather than choosing them.
Property Prices Are Also Falling
The increase in available property comes as home values continue to decline.
Cotality’s national Home Value Index fell 0.9% in August, which was the fifth consecutive monthly decline and took national values 3.6% below their March 2026 peak. Cotality
Its September data has since shown another 1.1% monthly fall, leaving national dwelling values 5.2% below their March peak. Cotality
The downturn is also remarkably widespread.
By the end of September, 97% of capital-city suburbs had recorded falling values over the previous three months. Cotality
However, national and capital-city averages don’t tell you what every individual property is worth.
Different suburbs, property types and price ranges can behave very differently.
Homes Are Taking Longer to Sell
Another useful indicator for buyers is the amount of time properties are spending on the market.
Cotality’s September Housing Chart Pack showed the national median time on market had increased to 39 days, compared with 28 days a year earlier.
Vendor discounting had also widened across the capitals to a median 4.2%, the highest level since January 2023. Cotality
Neither figure means every vendor will negotiate heavily.
But together with rising stock levels and falling values, they indicate that buyers generally have more room to negotiate than they did when properties were selling quickly.
Distressed Property Listings Are Rising, But Remain Relatively Low
SQM Research also reported an increase in distressed property listings.
There were 4,510 distressed listings nationally in August, up 4.2% from July and 10.0% higher than a year earlier. Adviser Voice
That sounds dramatic in isolation, but context matters.
SQM Research described distressed stock as still relatively contained, and the increase hasn’t occurred evenly around Australia. Adviser Voice
So buyers shouldn’t assume that an increase in distressed listings means sellers everywhere are under financial pressure or willing to accept substantially lower offers.
More Buyer Power Doesn’t Mean Unlimited Buyer Power
This is perhaps the most important point.
A softer property market can give buyers greater negotiating power without giving them unlimited negotiating power.
A well-located, well-presented property priced appropriately can still attract multiple interested buyers.
Some sellers also have no urgent need to sell. If an offer is substantially below their expectations, they may simply reject it or wait.
The current market therefore isn’t necessarily an invitation to throw dramatically low offers at every property and see what sticks.
Instead, it gives buyers more opportunity to negotiate based on evidence rather than urgency.
How Much Should You Offer on a Property?
There isn’t a universal percentage buyers should deduct from the asking price.
A more useful approach is to look at comparable recent sales, how long the property has been listed, whether its asking price has changed, local supply and demand, the property’s condition and your own maximum budget.
If similar homes have recently sold below the vendor’s asking price, that information may help you negotiate.
Likewise, a property that has been sitting on the market for several months may have a different negotiating dynamic from one listed three days ago with several interested buyers.
The important thing is to decide what the property is worth to you before negotiations become emotional.
Know Your Borrowing Limit Before You Negotiate
Greater negotiating power isn’t particularly useful if you don’t know what you can comfortably afford.
Before making offers, buyers should have a clear understanding of their borrowing capacity, likely repayments and available deposit.
Knowing your financial ceiling can help you negotiate with more confidence because you already know where you need to stop.
It can also reduce the temptation to stretch your budget when negotiations become competitive.
Remember that your maximum borrowing capacity and your comfortable purchase budget aren’t necessarily the same number.
A lender may be prepared to lend a certain amount, but you still need to consider how the resulting repayments fit with your household expenses and financial goals.
Can Home Loan Pre-Approval Help When Negotiating?
Home loan pre-approval can give buyers a clearer indication of their potential borrowing position before they start making offers.
It isn’t a guarantee of final loan approval. The lender will still need to assess the property and confirm your circumstances and application when you proceed.
But having finance preparation underway can help you understand your budget and potentially move more confidently when you find the right property.
In a market where buyers have more choice, that preparation means you can spend less time wondering “Can we afford this?” and more time deciding “Is this actually the right property for us?”
Is It a Buyer’s Market in Australia?
Some indicators currently point towards conditions that are more favourable to buyers.
Listings are substantially higher than a year ago, homes are taking longer to sell, vendor discounts have widened and property values are falling across most capital-city suburbs. Adviser Voice
Cotality itself described conditions at the end of winter as a buyer’s market, although it also noted subdued buyer confidence. Cotality
But conditions aren’t identical everywhere.
Some properties, suburbs and price points can still attract strong competition.
Rather than treating the entire Australian market as one giant clearance sale, buyers can use the broader slowdown to become more selective and better prepared.
Buying a Home? Preparation Can Strengthen Your Position
More listings and softer prices may create opportunities, but the strongest negotiating position starts before you make an offer.
Understanding your borrowing capacity, repayments and finance options means you can establish a realistic budget and negotiate without guessing.
At Home Loans Australia, we can help you understand your borrowing position and compare home loan options before you start making offers. Contact us now to understand your borrowing position: https://homeloansoz.com.au/contact/
The market may be giving buyers more room to negotiate. Knowing your numbers can help you decide how to use it.
Frequently Asked Questions
Are Australian property prices falling?
Yes. Cotality’s national Home Value Index fell 1.1% in September 2026, marking the sixth consecutive monthly decline. National dwelling values were 5.2% below their March 2026 peak. Cotality
Are there more properties for sale in Australia?
Yes compared with a year earlier. SQM Research reported 269,717 residential listings nationally in August 2026, which was 12.8% higher than August 2025. However, listings were 3.3% lower than July, so the annual increase shouldn’t be confused with a monthly rise. Adviser Voice
Do buyers have more negotiating power now?
Several indicators suggest negotiating conditions have improved for buyers. Stock levels are higher, homes are taking longer to sell, vendor discounts have widened and values are falling across most capital-city suburbs. Individual properties can still attract strong competition. Cotality
Are distressed property listings increasing?
SQM Research reported 4,510 distressed listings nationally in August, 4.2% higher than July and 10.0% higher than August 2025. However, SQM said distressed listings remained relatively contained. Adviser Voice
Does a falling property market mean I should make a low offer?
Not automatically. Consider recent comparable sales, the property’s condition, time on market, local demand and your own budget. A softer market can improve negotiating conditions without meaning every seller will accept a large discount.
Should I get home loan pre-approval before making an offer?
Pre-approval can help establish your potential borrowing position and budget before negotiations begin. It isn’t final loan approval, and the lender will still need to assess the property and your circumstances.
How do I know my maximum property budget?
Your budget depends on factors including income, deposit, existing debts, living expenses, interest rates and lender criteria. A broker can assess borrowing capacity and estimated repayments before you begin making offers.
More information on Falling Property Prices can be found here: https://homeloansoz.com.au/rental-yields-rise-as-property-prices-fall-in-australia/
More information on increasing listings can be found here: https://homeloansoz.com.au/more-homes-on-the-market-what-rising-property-listings-mean-for-buyers-and-sellers/
More information on the latest interest rate increase can be found here: https://homeloansoz.com.au/rba-cash-rate-rises-to-4-60-september-2026/
More information on the 5% Deposit scheme can be found here: https://homeloansoz.com.au/how-the-5-deposit-scheme-is-helping-more-australians-buy-their-first-home/
