Buyer’s Market vs Seller’s Market: How to Read the Suburb You’re Buying In
Australian property headlines often describe the market as either rising, falling or correcting. However, conditions can vary considerably between cities, suburbs, price ranges and property types.
One suburb may favour sellers, while a neighbouring suburb gives buyers more room to negotiate. Even within the same suburb, houses and apartments can behave differently. Renovated family homes may attract strong competition while comparable unrenovated properties take longer to sell.
To understand the market you are buying in, consider days on market, available property stock, auction results, vendor discounting, comparable sales and the number of active buyers competing for similar properties.
What is a buyer’s market?
A buyer’s market occurs when the supply of properties for sale is greater than the level of buyer demand.
Properties may take longer to sell, vendors may become more flexible and buyers generally have more time to complete their property due diligence. There may also be greater scope to negotiate on price, settlement dates or other contract terms.
However, a buyer’s market does not mean every property will sell at a discount. Quality homes in tightly held streets can still attract strong competition.
What is a seller’s market?
A seller’s market occurs when buyer demand is stronger than the supply of available properties.
Well-positioned homes may sell quickly, receive multiple offers or achieve prices above initial expectations. Buyers often need to make decisions faster and may have less negotiating power.
This does not mean buyers should abandon their price limits. It means accurate appraisal, preparation and a clear property negotiation strategy become more important.
How can you tell whether a suburb is a buyer’s or seller’s market?
No single statistic provides a complete answer. The best approach is to assess several indicators together and compare them with recent conditions in the same suburb.
1. DAYS ON MARKET
Days on market measures the time between a property being listed and securing a buyer.
As a broad starting point:
- Fewer than 30 days can indicate a seller-leaning market.
- Between 30 and 60 days may indicate a more balanced or changing market.
- More than 60 days can indicate that buyers have greater choice or negotiating power.
These ranges are only a guide. Compare the current median with the suburb’s previous three to six months and assess houses, apartments and other property types separately.
Premium and ultra-luxury properties require a different interpretation. These homes often take longer to sell because the potential buyer pool is smaller, even when demand at the top end of the market remains strong. One unusually long campaign can also distort the average, so the median is generally more useful.
2. AVAILABLE PROPERTY STOCK
Available stock is the number of properties currently competing for buyers in your target market.
Low stock combined with busy inspections generally favours sellers. When the number of comparable listings rises, buyers have more alternatives and may face less pressure to compete for a single property.
HOW TO MONITOR PROPERTY STOCK YOURSELF
Create a saved search on a major property portal using the same criteria as your buying brief:
- Suburb or group of suburbs
- Property type
- Number of bedrooms
- Price range
- Land size, where relevant
You can set up a saved search and receive daily property alerts through realestate.com.au.
Once a week, record:
- Total active listings matching your criteria
- Number of new listings
- Number marked under offer
- Number removed or sold
- Number of genuinely comparable properties
Record the figures on the same day each week and use the same filters. After four to eight weeks, the direction of the market should become clearer.
For example, if your search regularly shows eight suitable homes and then rises to 15 or 20, buyers may be gaining more choice. If the number falls to three or four while properties continue to sell, competition may be increasing.
For a broader postcode or city-level view, SQM Research’s Total Property Listings tracks the amount of residential property advertised online.
Data providers and property portals may count listings differently. The precise number matters less than whether the same measure is consistently rising or falling.
3. AUCTION CLEARANCE RATES
An auction clearance rate measures the proportion of reported auctions that resulted in a sale. It can provide a useful indication of buyer demand, particularly in auction-focused markets such as Sydney and Melbourne.
WHERE TO FIND AUCTION CLEARANCE RATES
Cotality publishes weekly Australian auction results, including auction volumes and clearance rates across the capital cities.
Major property portals also publish results that can be searched at suburb level. For example, Domain’s auction results show scheduled auctions, reported results, sales, withdrawals and passed-in properties.
HOW TO READ AUCTION RESULTS
Check the results each week and record:
- Auctions scheduled
- Results reported
- Properties sold
- Properties passed in
- Auctions withdrawn
- Final clearance rate
Avoid relying only on Saturday evening’s preliminary rate. Some results have not been reported at that stage, so the figure may change as more sales are confirmed.
It is also better to follow the four-week trend than one weekend’s result. Public holidays, school holidays, weather and unusually low auction volumes can distort an individual week.
Suburb-level results require additional care. A clearance rate based on fewer than 10 reported results is unlikely to provide a reliable measure. If your target suburb has only a few auctions, group it with neighbouring suburbs that attract a similar buyer profile.
Auction data is less useful in markets where most properties sell by private treaty. In those areas, days on market, available stock and vendor discounting may provide stronger signals.
4. VENDOR DISCOUNTING
Vendor discounting measures the difference between a property’s original advertised asking price and its eventual contract price.
Greater discounting can suggest that vendors are adjusting their expectations to meet the market. Smaller discounts, or properties consistently selling above their advertised range, can indicate stronger buyer competition.
WHERE TO FIND VENDOR DISCOUNTING DATA
The Cotality Monthly Housing Chart Pack reports vendor discounting, days on market, listing volumes and other indicators across Australian capital city and regional markets.
This provides a useful broader benchmark. To understand discounting in a particular suburb, however, you may need to track individual campaigns.
HOW TO TRACK VENDOR DISCOUNTING YOURSELF
When a comparable property is first listed, record:
- Property address
- Listing date
- Original asking price or price guide
- Any changes to the advertised price
- Auction or private-treaty result
- Final sale price
- Days on market
You can use the realestate.com.au sold-property search to check recently reported sale prices. Official sale records may also become available through the relevant state or territory land registry or Valuer-General.
For a property initially advertised at $1.5 million and sold for $1.44 million, the vendor discount would be:
($1,500,000 − $1,440,000) ÷ $1,500,000 = 4%
Do not draw a conclusion from one discounted sale. Track at least 10 comparable campaigns where possible and look at the median result.
Exercise care with auction price guides and advertised ranges. They do not always represent the vendor’s reserve or original asking price, so any discount calculated from them is only an indication. Properties with undisclosed sale prices should be excluded until reliable information becomes available.
5. RECENT COMPARABLE SALES
Review properties sold within the past three to six months that closely resemble the home you are considering.
Compare:
- Property type and land size
- Street and position
- Condition and renovation quality
- Floor plan, parking and orientation
- School catchments and access to amenities
- Sale method and level of buyer competition
A sale in the same suburb is not automatically comparable. Differences in location, condition or accommodation can have a significant effect on value.
Cohen Handler’s recent property purchases also show how properties are being secured across different Australian markets, including on-market, off-market and pre-auction purchases.
6. BUYER COMPETITION
Published data often reflects deals negotiated several weeks earlier. Open homes and auctions can provide a more immediate view of current demand.
Look for signs such as:
- The same buyers attending several inspections
- Contracts being requested early in the campaign
- Multiple offers within the first week
- Auction dates being brought forward
- Properties selling before auction
- Agents contacting underbidders about similar homes
These observations can help show whether buyer competition is strengthening or easing before the change appears in published market data.
A simple weekly market check
Set aside 15 minutes each week and record five figures:
- Active comparable listings
- New comparable listings
- Comparable properties sold
- Median days on market
- Auction clearance rate or typical vendor discount
After four to eight weeks, you should have a clearer picture of whether supply is building, properties are selling faster and vendors are becoming more or less flexible.
Define the market around your property brief
Instead of asking, “Is Sydney a buyer’s market?”, ask a more specific question:
What is happening with renovated three-bedroom houses in my preferred part of the Inner West within my budget?
This narrower definition provides a clearer picture of the conditions you are likely to face.
Markets can vary by city, suburb, street, property type and price bracket. Broad market conditions matter, but the competition for properties matching your property buying brief matters more.
How should buyers respond to each market?
In a buyer’s market, take the time to compare properties, investigate vendor motivation and support your offer with relevant sales evidence. Greater choice can create opportunities, but it should not replace proper due diligence.
In a seller’s market, organise finance, contract reviews and inspections early. Set a clear walk-away price and prepare to act when the right property becomes available.
In either market, the principles remain the same: understand the property’s value, assess its individual strengths and risks, and avoid allowing urgency or broad market commentary to determine your decision.
Frequently asked questions
IS IT BETTER TO BUY IN A BUYER’S MARKET?
A buyer’s market can provide more choice, longer campaign times and stronger negotiating conditions. However, the quality and long-term suitability of the property remain more important than the market label alone.
HOW MANY DAYS ON MARKET INDICATE A BUYER’S MARKET?
More than 60 days may indicate buyer-friendly conditions in a typical residential market. This figure should be compared with the suburb’s recent median and adjusted for the property type, price range and method of sale.
CAN THE SAME SUBURB BE BOTH A BUYER’S AND SELLER’S MARKET?
Yes. Houses may be in high demand while apartments experience slower conditions. Renovated homes may sell quickly while properties requiring significant work take longer. Market conditions should always be assessed against your specific buying brief.
ARE AUCTION CLEARANCE RATES ENOUGH TO MEASURE THE MARKET?
No. Auction clearance rates are one indicator and can be misleading when the sample is small. They should be considered alongside days on market, stock levels, vendor discounting, comparable sales and buyer attendance.
DO DAYS ON MARKET APPLY TO LUXURY PROPERTY?
Not in the same way. Premium and ultra-luxury properties often have longer campaigns because fewer buyers can purchase at that price level. Longer days on market do not automatically mean the vendor is under pressure or the property is overpriced.
HOW CAN A BUYER’S AGENT HELP ASSESS A LOCAL MARKET?
A buyer’s agent can analyse comparable sales, track current campaigns, speak with local selling agents and assess the competition for properties matching your brief. Cohen Handler’s property buying services cover research, sourcing, appraisal, due diligence and negotiation.
Get advice on the market where you are buying
Cohen Handler has buyer’s agents working across Sydney, Brisbane, Melbourne, the Gold Coast, Sunshine Coast, Adelaide, Perth and Canberra, as well as selected surrounding regions.
Whether you are buying in a fast-moving seller’s market or an area offering buyers more choice, our local team can help you understand current conditions and plan your next move.