Data shows stock levels building across combined capitals, with clearance rates at their weakest July result in two decades
Total housing supply across Australia's combined capital cities has reached its highest level in seven years, according to Domain's July 2026 Market Insights, as conditions shift in favour of buyers.
New listings hit a record high for July, with more vendors bringing properties to market. Homes are taking longer to sell and stock levels are continuing to build, giving buyers greater choice and stronger negotiating power.
The combined capitals auction clearance rate rose to 49.1%, though this remains the weakest July result since 2005. Auction withdrawals climbed to 15.9%, the highest since April 2020.
Sydney, Brisbane and Canberra are among the cities seeing the most pronounced shift toward buyer-friendly conditions, with rising supply, longer selling times and increased discounting. Despite this, distressed listings remain historically low, suggesting softer conditions reflect weaker demand rather than forced selling.
Adelaide continues to absorb record new supply, maintaining its position as one of the country's stronger markets. Perth is also outperforming historical norms, underpinned by strong demand and a tight rental market.
Total supply, all property types, July 2026.
| All property types | Monthly change | Annual change |
|---|---|---|
| Perth | 23.9% | 52.7% |
| Brisbane | 18.3% | 38.3% |
| Melbourne | 3.4% | 11.3% |
| Canberra | 1.6% | 15.9% |
| Sydney | 2.6% | 16.4% |
| Adelaide | -0.6% | 13.5% |
| Hobart | -0.9% | -8.1% |
| Darwin | -6.9% | -8.0% |
Source: Domain, July 2026 Market Insights.
Domain chief residential economist Nicola Powell (pictured right) said the second consecutive cash rate hold suggested the RBA was growing more confident that inflation was moving in the right direction. "While inflation remains above target, recent data has reduced the urgency for further tightening and points to a longer period of stability," she said.
Powell added that while the hold might remove some uncertainty, it would not change the factors shaping housing market conditions. "Affordability remains stretched, buyers are cautious and rising supply is becoming increasingly influential," she pointed out.
“We’re already seeing that in the latest data. Total supply climbed to a seven-year high across the capitals, giving buyers more choice and creating a more competitive environment for sellers.
"Our view remains that the balance of risks has shifted away from further rate rises and towards an extended period of stability, with the first cash rate cut not expected until mid-2027."
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