Higher borrowing costs and economic uncertainty continue to weigh on buyer confidence, with sales activity declining for an eighth consecutive month.
According to the most recent data from Cotality, 6,175 properties changed hands in August, representing an 11.6% decline compared with the same month in 2025.
Cotality Chief Property Economist Kelvin Davidson said the large number of properties available for sale was giving buyers considerable negotiating and pricing power.
However, Mr Davidson noted that the current slowdown differs from some previous property downturns because most sellers are not under significant financial pressure.
“Most vendors won’t be in a forced-selling position, so prices aren’t collapsing,” he said.
What this means for buyers and sellers
For buyers, the combination of weaker sales activity and a large selection of available properties can create opportunities.
With less competition, buyers may have more time to compare properties, undertake due diligence and negotiate before committing to a purchase.
However, greater negotiating power doesn’t necessarily mean sellers will accept substantially lower offers.
Many vendors are in a position to wait for an acceptable price rather than sell quickly, which helps explain why falling sales volumes haven’t translated into a sharp decline in property values.
For sellers, this means realistic pricing and patience may be particularly important. Properties can still attract interest, but buyers may be more selective when they have plenty of alternatives.
The broader lesson is that a slower market doesn’t automatically favour one side in every transaction. Buyers may have more choice and negotiating power, while sellers who aren’t under pressure can afford to hold firm.
Regardless of market conditions, buyers should establish their financial limits before making an offer. If you have clients preparing to negotiate on a property, we’d be happy to help them work out what they can comfortably afford.
