Understanding whether you are in a buyers market or sellers market is one of the most important inputs for any property decision. The same property in the same suburb can warrant entirely different strategies depending on market conditions.
What Is a Sellers Market?
A sellers market exists when demand for property exceeds available supply. Indicators include:
- High auction clearance rates (above 70%)
- Low days on market (properties selling in under 30 days)
- Multiple offers on most listings
- Properties regularly selling above the advertised price guide
- Low total stock on market relative to historical averages
What Is a Buyers Market?
A buyers market exists when supply exceeds buyer demand. Indicators include:
- Low auction clearance rates (below 55%)
- High days on market (60+ days)
- Vendors accepting offers below price guide
- Rising stock levels
- Vendors making concessions on price and settlement terms
How Do I Know Which Market I Am In?
| Indicator | Sellers Market | Buyers Market |
|---|---|---|
| Auction clearance rate | Above 70% | Below 55% |
| Days on market | Under 30 days | 60+ days |
| Stock levels | Low and falling | High and rising |
| Sale vs price guide | Above guide | At or below guide |
How Should Buyers Respond?
In a sellers market
- Move quickly — good properties sell fast
- Have finance pre-approved before inspecting
- Make clean offers with minimal conditions
- Understand auction strategy and have a clear limit
In a buyers market
- Take your time and do thorough due diligence
- Negotiate hard — vendors are more flexible
- Use long settlement terms as a negotiation tool
- Request price reductions for defects found in building inspections
How Should Sellers Respond?
In a sellers market
- Price at market or slightly below to generate competition
- Auction is typically the best method to maximise competitive tension
In a buyers market
- Price accurately from day one
- Private sale may outperform auction when buyer competition is low
- Be prepared to negotiate on settlement terms and inclusions
Frequently Asked Questions
Is Melbourne currently a buyers or sellers market?
Market conditions vary by suburb and property type. A Collings Property Advisor can give you a current read on conditions in your specific suburb before you make a move.
Can the market change during a campaign?
Yes. Interest rate decisions and seasonal factors can shift conditions quickly — this is why understanding market context before launching a campaign is critical.
Why Collings?
Collings Property Advisory gives buyers and sellers independent market analysis and negotiation support for a fixed $4,500 + GST. No commission. No conflict of interest.
Visit collings.com.au/portal to book your advisory session.
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
