Property listings are rising in smaller capital cities and falling in larger markets.

Analysis of listings on realestate.com.au shows listings are up by 17% in Brisbane, Perth and Adelaide and down by 16% in Sydney and Melbourne.

Nationally, listings are down by 2% in the September quarter compared to the same time last year.

REA Group chief executive Cameron McIntyre says changes in interest rates are resulting in market uncertainty.

However, he believes that buyer confidence and activity will pick up in the coming months.

“Resilient employment, limited forced selling and homeowner equity buffers, along with the ongoing constrained supply, should put a floor on price falls as we see interest rates stabilise in the coming months,” he says.

“We continue to see a two-speed market with smaller capital cities offsetting quieter conditions in Sydney and Melbourne.

“Despite the decline, listings remain comparable with long-term averages.”

According to CommBank, elevated stock levels give buyers more negotiating power.