What is the Difference Between a Buyers and Sellers Market?

  • Posted 26 Feb

What is the Difference Between a Buyers and Sellers Market?

If you’re looking to buy a new home, you’ll want to understand what the market is doing, so you can plan and determine your strategy.

Understanding the difference between a buyers and sellers market is key to how much money you’ll be able to borrow and the types of deals available.

Below is a breakdown on what a buyers and sellers market is, and understanding how this impacts on your mortgage and home buying decisions.



What is a Buyers Market?


A buyers market simply means that if you’re looking to buy a home, in this type of market, you’re going to find properties are selling for cheaper than normal. You’re also going to find plenty of opportunities to find the right mortgage for your situation.

Buying in this market will save you money initially, but you need to be careful about going to far outside of your means, as interest rates can change and housing rates can increase. Make sure you use a mortgage calculator to get a better understanding of what you can really afford to borrow.



What is a Sellers Market?


If you’re buying in a sellers market, it means that the sellers are going to get better deals than you are. They are going to be able to sell their homes for top dollar and you won’t find a lot of room for negotiating in this type of market.

A lot of homes will go to auction and sell for high prices, which can make finding the perfect home slightly more difficult than if you were purchasing in a buyers market.

This is why it’s important to have an understanding of which market you’re buying in, so you can make the right preparations.

Talking to a qualified mortgage broker will always ensure you get the best home loan deal, no matter what market you’re buying in.



Looking at Australia’s Numbers


Over the past 6 months or so, Australia’s national housing market has seen a slight shift in favour of sellers, but only slight. Generally, the market is balance, with the number of homes for sale being approximately in line with the number of home loans being committed to.

What this means is that supply and demand are about equal, which is probably the best scenario for both buyers and sellers.

This, of course, depends on the state and territory you’re looking to buying in.


  • VIC and ACT are largely a sellers market
  • NSW and SA are more of a balanced market
  • QLD, WA, NT and TAS are all buyers markets


We can break this down further and compare capital cities with regional areas.

Australia tends to see capital cities being more in favour of sellers with regional areas being a bit more balanced.

If we break it down by city:


  • Sydney & Melbourne are extreme seller’s market, meaning they are the highest on the scale
  • Brisbane is a balanced market, making it a great place to buy and sell in
  • Perth is similar to Brisbane, being more balanced for both buyers and sellers
  • Adelaide is slightly favoured towards sellers
  • Darwin & Hobart are slightly favoured towards buyers
  • Canberra is a seller’s market


Having a chat with your local real estate agent is also a great way to find out what your local market is doing. Read the newspapers and see what the last 6 weeks have been in terms of property sales. This will give you a better understanding of what market you’re currently buying in.

Ready to buy your new home? Chat to the team at Australian Credit and Finance about your home loan needs today. We’ll find the best mortgage to fit in with your specific situation plus provide you with advice on ways you can save.

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