The country's owners are delaying the sale of their properties, with new data showing the smallest number of new listings in 12 years.
The downturn is particularly noticeable in Sydney and Melbourne, where 30% fewer properties are listed for sale than at the last peak hit by the market.
In addition, the decline in stamp duty revenues in both states weakens the fiscal position of governments.
CoreLogic's housing snapshot – collected at the end of May each year – showed that the number of real estate listings in Brisbane, Canberra and Perth had also declined over the last year. Adelaide, Hobart and Darwin, on the other hand, recorded slight increases in the number of registrations.
The gloom prevails even in the gentrified suburbs such as Yarraville, in the center-west of Melbourne.
Doubts among buyers became widespread and prompted homeowners to delay the sale of their properties, said Adam Welling, a local real estate agent.
"Many sellers worry that their home is not selling because buyers are not making a buying decision," he told ABC News. "The people who can stand are just putting things on the back burner and seeing what happens."
However, Welling says that the scarcity of supply has put a floor on prices. "This has led to an increase in auction bids, which has led to higher prices and we feel that we have slightly bottomed out," he told ABC News.
There are also retirees who canceled their decision to downsize because of the cooling of the market, but in an interview granted at 7:30 am, the economist, Trent Wiltshire, said that 39, there are signs of a market recovery.
"Buyers are a little more interested in buying, even just a few weeks after the elections, so there has been a bit of a turnaround," he said.
While Domain's property records reveal that at the beginning of 2019, the number of real estate transactions reached the lowest level in decades, Wiltshire said the market would probably be at a new low this year.
"But I do not see a big recovery happening, maybe just low prices, and then fairly stable prices for next year," he said.
Top suburbs:
Millner
,
Campsie
,
Narara
,
Newcastle
,
Goulburn
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