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Property listings giant REA Group (ASX: REA) has reported a return to national buy listing growth in the March quarter, with Sydney and Melbourne leading the recovery even as three consecutive interest rate hikes and softening dwelling values reshape the housing market.
New buy listings nationally grew 1 per cent year-on-year in the three months to 31 March 2026, reversing declines recorded in earlier quarters, with Sydney listings up 4 per cent and Melbourne up 7 per cent over the period.
The rebound in supply comes at a time when both cities are experiencing downward pressure on prices.
Cotality's Home Value Index for March 2026 recorded a 0.1 per cent monthly decline in Sydney dwelling values and a 0.2 per cent fall in Melbourne, extending quarterly losses to 0.2 per cent and 0.6 per cent respectively.
Sydney's median dwelling value sits at $1.295 million while Melbourne's median has fallen to $828,249.
Rising for-sale stock levels have pushed auction clearance rates to multi-year lows in both cities, according to Cotality which notes that softer values in Sydney and Melbourne have coincide with elevated supply and weakening buyer competition.
The Reserve Bank of Australia added to the headwinds on 5 May when it lifted the cash rate to 4.35 per cent, the third consecutive hike in a tightening cycle.
For REA, owner of the realestate.com.au platform, the rise in listings is a positive with the group revealing the increased number of properties on the market has translated directly into financial performance.
REA Group posted third-quarter revenue of $398 million, up 11 per cent on the prior corresponding period after stripping out the impact of mergers and acquisitions. On an unadjusted basis, revenue grew 6 per cent.
“REA Group’s third quarter performance reflects our focus on enhancing our immersive consumer experiences, and increasing the value delivered to customers," says REA Group CEO Cameron McIntyre.
"The result was underpinned by double-digit revenue growth across our Australian businesses and strong double-digit yield growth in our core residential business.
"Strong underlying fundamentals supported the health of the property market and supply kept pace with buyer demand.
"While global events and interest rate increases impacted broader economic sentiment, listing activity in the two largest property markets, Sydney and Melbourne, remained strong."
April buy listings surged 19 per cent year-on-year nationally, with Sydney up 25 per cent and Melbourne up 20 per cent.
REA Group says realestate.com.au drew a new quarterly record of 12.9 million average monthly visitors during the period.
EBITDA hit $220 million for the quarter, a 16 per cent increase, as residential buy yield, or the average revenue REA earns per listing, climbed 14 per cent as agents continued upgrading to premium advertising products.
For the nine months to 31 March, group revenue reached $1,314 million, an 8 per cent increase excluding acquisitions.
REA Group has maintained its full-year guidance for national listing volumes to decline between 1 per cent and 3 per cent across FY26, although early fourth-quarter data suggests a sharper acceleration.
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