Frustrated home seekers have been thrown a lifeline following an unusually large jump in property listings over July, with the greater choice of housing set to ease buyer competition and moderate prices.

PropTrack data showed new listings across the country’s capital cities increased 10 per cent over the month and the current volume of homes listed for sale is 14.4 per cent higher than a year ago.

Even more listings are expected to be added to the market over August and September – the start of the spring selling season and traditionally the most active part of the year for sales.

PropTrack director of research Cameron Kusher said both Sydney and Melbourne were now becoming “buyer’s markets” – the former after being an extreme “seller’s market” for much of 2023.

The bump in listings will help ease competition for housing.

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Melbourne was a particularly good market for buyers, he said.

“It’s probably the easiest (capital city) market to buy in at the moment,” he said.

Sellers still held the power in Brisbane, Perth and Adelaide, but Mr Kusher added that the change in listings would take some of the “desperation” out the market.

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“Buyer demand in those smaller capitals is still very strong, but a jump in listings will at least minimise the fear of missing out that people often get when there’s little property to choose from,” he said.

Adelaide had one of the biggest increases in listings, with the total volume of established housing stock rising by 15.7 per cent over July. The supply of new listings was 17 per cent higher than a year ago.

PropTrack director of research Cameron Kusher said the RBA’s delay on rate cuts may be driving up listings.

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Melbourne listings jumped 10.3 per cent over the month and are now up nearly 15 per cent on the volume recorded last year, according to PropTrack.

Sydney and Brisbane both had rises of about 7 per cent, with respective listings up 12.3 per cent and 16.1 per cent annually.

Mr Kusher attributed the rise in national listings partly to the Reserve Bank’s decision to delay an interest-rate cut.

This “forced the hand” of struggling homeowners who had been waiting for some repayment relief, encouraging them to sell, he said.

“There was an expectation that rates would be cut this year and some homeowners were probably waiting that out,” Mr Kusher said.

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There was a shortage of listings in most areas earlier this year. Picture: Gaye Gerard

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“Now that a cut looks more likely next year there are homeowners who can’t hold on any longer and they’re choosing to sell.

“Most homeowners will try to sell their home or divest before they get into arrears.”

A recent increase in rental stock may have also encouraged more property sales, Mr Kusher said.

“Many people rely on the rental market when they’ve sold their old home and are looking for their new one.

“Until now, competition for rentals has been so strong that this would have discouraged some (families) from selling.”

SQM Research director Louis Christopher said the rise in listings has made home sellers “more negotiable”.

He added that there may be a window of slower price growth until interest rates are cut. “Any rates cuts would lift certainty from would-be home buyers towards the end of the year,” he said.