Sydney homebuyers are seeing hope and the upward trend is expected to continue into the spring selling season.

August was the busiest month for new listings in Sydney, with the latest PropTrack Listings Report showing an 18.4 per cent increase in new listings compared to August last year.

PropTrack senior economist and report author Angus Moore said transactions in Sydney were busier in August than in previous years.

After a quiet first half of 2023, Sydney's property market activity appears to be picking up.

Mr Moore predicts the upward trend will continue and reach its typical peak around October and November.

PropTrack data shows that West Ryde, Lidcombe and North Sydney have seen the biggest change in new listings from last year.

The total number of listings was still slightly down, by 5.8 per cent from a year ago, but Mr Moore said conditions for sellers had improved compared to the end of last year.

House prices continued to pick up nationally, posting their eighth consecutive month of growth in August.

Auction clearance rates have remained steady throughout the winter and have improved compared to levels at the end of 2022, Mr Moore said.

Nationally, new listings were up 20 per cent on the previous month.

More new listings meant the total number of properties listed for sale across Australia increased in August, up 5.7 per cent month-on-month.

Mr Moore said with the cash rate holding steady for the third consecutive month, the market was unlikely to price in further increases in interest rates.

Inflation appeared to be returning to target at a pace consistent with the Reserve Bank's expectations.

According to Mr Moore, low unemployment, a tight rental market and increased immigration mean that demand for housing remains strong.

The rental market remained very tight in most parts of the country, with rents growing rapidly amid strong demand and limited rental supply.

International migration and population growth are expected to remain strong, which will further increase housing demand, Mr Moore said.

Ahead of spring, property market activity increased in the regions, but unlike the capital cities, the pace of activity was slower in these areas.

However, unlike the provincial capitals, the pace of activity has slowed down this year compared to last year.