August 29, 2026 — 5:00amHome buyers waiting for a rush of new listings to hit the market in spring may be disappointed, and may have to make do with the unsold homes languishing on Melbourne’s market.Home sellers are sitting on their hands, experts say, waiting for an improvement in the market that has been affected by interest rate rises and the coming state election, while buyers are now waiting for the right property to be listed before making an offer.The number of homes newly listed for sale over the four weeks to August 23 was well down compared to the same time last year, down 16.3 per cent, Cotality data shows, and down 9.4 per cent compared to the five-year average.The most affected areas of Melbourne have been the inner east (down 21.1 per cent), inner city (down 20.9 per cent) and the southeast (minus 16.7 per cent), as owners in affluent areas hold off from listing their homes.But in Melbourne’s west, one of the more affordable markets, it’s a different story, with listings down only 5.8 per cent.Cotality head of research Gerard Burg said Melbourne was in for a “cooler spring” this year, with potential vendors spooked by falling home values, uncertainty around interest rates and general economic malaise.“What we’re starting to see in terms of new listings is a significant supply response pullback, led by some of the highest-value markets, like the inner east, southeast, and inner-city areas,” he said.“By contrast, out in the west, we’ve seen a comparatively much smaller pullback in terms of listed stock.”Home buyers will be able to choose from a build-up of total listings, which include both newly listed homes and homes that have been languishing on the market for months. There are 15.9 per cent more homes for sale overall than this time last year.“In terms of total listings, there are more properties available for sale, which is good news for buyers,” Burg said. “It’s an interesting situation where people ask if it’s a buyer’s market – if you are still able to buy, yes. But it’s only a buyer’s market because so many people have been pushed to the sidelines.”Barry Plant CEO Lisa Pennell said while new listings may be lacking, buyers were definitely out there.“[We’ve been having] five per cent higher buyer numbers through our opens last weekend, week on week. My sense is that momentum is beginning to build as optimism around a change of government builds in Victoria,” Pennell said.She said sellers were reluctant to list before November’s state election, but thought listings would pick up as spring moved along.“Depending on what the polls show, if we see more optimism then we will see change,” she said. “We’re under some fairly onerous taxes and legislation in Victoria at the moment, and there are some concerns around the economy.”Pennell added that Melbourne was “so heavily undervalued” that it was not a “question of if we’ll have more buoyancy, just a question of when”.“We’re attracting a lot more interstate attention from people who moved interstate when prices were cheaper, that might well be contemplating a move back home,” she said.Not all buyers and sellers are waiting though, with Gabbi Gai and John Yu choosing spring to sell and hopefully buy.The couple is selling their four-bedroom home in Hoppers Crossing, and are planning to buy a new home closer to the city where they work and have friends.John Yu and partner Gabbi Gai are selling their Hoppers Crossing home this spring. Jason SouthThe downturn has opened up more opportunities for them to get into a more expensive market.“We feel like it’s a good chance to go for some suburbs we couldn’t reach before, such as Doncaster, Pascoe Vale or Essendon,” Gai, 32, said.Yu, 40, is a building site foreman for housing and commercial construction, while Gai teaches international students in the city, and are now planning for a future family.Outer suburbs and first home buyer markets have been less affected by the downturn, even as Melbourne’s median home value has fallen to be lower than five years ago.“It’s currently a good opportunity to buy a house [closer to the city] because prices are down,” Yu said.“We’re quite positive about our house selling because … Hoppers Crossing has been one of the top five areas of house price growth over the past year,” Gai added.Yu said they had thought about the asking price on their home, and were undertaking some renovations to get it ready for sale. “I’m being realistic about the price to attract first-home buyers,” Yu said.The couple’s listing agent, Ray White Hoppers Crossing Principal Shahid Khan, said properties which were well-presented and renovated had a much higher chance of being sold, especially in a market dominated by owner-occupiers and few investors.“It gives a confidence to the buyer that they don’t have to do much of the work while they move immediately,” he said.More:Victoria residential propertyProperty marketProperty pricesSalesHousing slumpMelbourne house pricesProperty listingsFrom our partners