According to Domain, a jump in properties for sale in Australia's two biggest property markets in recent months has resulted in less competition for homes.
This is putting downward pressure on auction clearance rates and reigning in rapid price growth.
According to the report, new property listings last month rose by more than two thirds since lockdown in some areas.
In Sydney, Parramatta saw the number of homes listed for sale in November 88% higher than in September.
In Melbourne, Hampton, Brighton and Sandringham saw the biggest increase according to Domain, with new listings up 67% since September.
This rise in volume comes as welcome news for potential buyers, as the market begins to show signs of slowing down.
Earlier this month, a report from REA group showed the property market is starting to balance out between buyers and sellers in the lead up to Christmas.
The PropTrack Housing Market Indicators Report for December showed the number of homes for sale increased in November, while viewings per listings declined.
PropTrack Director of Economic Research and report author Cameron Kusher said Australia’s housing market is experiencing elevated demand, resulting in high volumes of sales at rapid speeds.
"There are also signs that some of the heat is coming out of the market, with falls in enquiry and a decline in views per listing," Mr Kusher said.
“We are still seeing many active buyers, but for the first time since the pandemic began, the strong ramp up in new listings has given them more choice. Buyers continue to outweigh sellers in the current market, but the gap is narrowing, meaning the strength of the sellers’ market is softening.
"Demand is expected to ease from its strong levels; fewer disruptions due to lockdowns should lead to a consistent supply of new listings, and price growth is expected to slow.
"Encouragingly for buyers, the volume of competition for housing stock should also ease. Overall, we appear to be witnessing the first signs of a shift from an extreme sellers’ market to one which is slowly moving towards more balanced conditions between buyers and sellers."
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