While stock may have fallen nationally by 8.5 per cent during December, Sydney led the nation in monthly declines at 26.4 per cent.
The capital city of New South Wales was also only narrowly beat out for annual decreases in stock by Darwin, which topped Sydney's rate of -19.6 per cent with -19.8 per cent.
Louis Christopher, managing director of SQM Research, said it was normal for listings to decline during this time of year due to the holidays.
"Overall I see no evidence of any slowdown in the market itself with these numbers," said Mr Christopher.
"And indeed our asking prices index recorded some very strong increases right throughout December. We are confident of a very strong market opening later this month."
However, Mr Christopher also expressed some trepidation regarding the large annual decreases in cities like Sydney and Darwin. Still, a lack of stock can present opportunity for owners of property in Carlton and surrounding areas, as fewer listings means increased competition among consumers.
In turn, this means the chance to sell a home for a higher price, as well as take advantage of increased demand.