The data on Uncollectables, Sold Priors and Passed-ins are through the roof across Australia.
Plus, we’ve got an undersupply of property because councils are not doing their job.
If you’re a vendor, and your agent gave you something within 5% of what you wanted, I would accept it.
And what do you do if you’re an agent and there is Zero interest in the property right now?
My Clarance Rate: 3/10 SOLD
The data on Uncollectables, Sold Priors and Passed-ins are through the roof across Australia.
Plus, we’ve got an undersupply of property because councils are not doing their job.
If you’re a vendor, and your agent gave you something within 5% of what you wanted, I would accept it.
And what do you do if you’re an agent and there is Zero interest in the property right now?
My Clarance Rate: 3/10 SOLD
I mean, you've got to be a brave vendor right now to say no when you're only 20 grand short and go on holidays at Christmas thinking that you might get more in the new year. You've got to be a brave vendor if you're only 20 grand short, and I had a few of those. Ladies and gentlemen, welcome to the 13th rate rise that I think has tipped the bucket On this same program, the Panos Market Wrap. If you go listen back the last few months, what have I been saying? That at the end of November and December, stock levels grow, buyers get lethargic and hey, johnny, quite frankly, it took 12 rate rises and nothing had happened. And then, on Melbourne Cup Day, that rate rise that got us all by surprise after having a pause for two months has now kicked in two out of nine today. Two out of nine. Not only that, I've been looking at the results around the place. Gold Coast had an agent just reporting zero out of seven in his area today. Right, the list goes on. I've seen other networks that get their results. Uncollectibles are through the roof. They're not just they're not reporting them in pastings through the roof, sole priors through the roof. They're all saying to you one thing there's not 10 people fighting over the one property. Yes, you will read tomorrow. You will read tomorrow in the Sunday press about some joint that hasn't been on the market for 50 years, that had 27 people registered and that it went off. That does not represent the market. That represents that property.
Tom Panos:People will decide it's time to sell over Christmas and lots of early in the year. My thoughts anyway, says Ben. So what are some of the things that I want to touch on today? Number one Muhammad Ali says a price is going to drop more. You recognize, as far as I'm concerned, we know they've already started dropping the last few months. It's what may say Go look at all the data companies. The data's there Black and white.
Tom Panos:I had SQM on my show this week. I'm gonna show on my video. I had Louis Christopher on. He's already preempting. He's basically saying the only markets he sees that are gonna go up next year are Brisbane and Perth and Adelaide. Potentially. He's not feeling bullish about Sydney or Melbourne. And don't forget we are talking about team two markets. Let's be very clear. Welcome to Australia everyone. There are two markets. You know what they are. There's the market that is the mortgage market, where people take out loans and there is the un-mortgage market, where there's no mortgages, and all the conversations I'm having about challenges and tipping points and mortgage cliff has nothing to do with the un-mortgage market. Life is great for them, amazing, in fact. One of them said to me keep raising the rates. I've got 10 million in the bank. I'm getting 6%. Keep raising the rates up. My life is a lot better. I'm not talking about that marketplace.
Tom Panos:We've actually got an absolute problem here in real estate. We've got a problem because do you know that? Units now it is like if you buy a unit, you can't. You can't build a unit now for the price that they are, you can't build it. They're incredible value, but no one's touching them. And here's the problem. Here lies the problem. The problem is the gap between units and houses is grown dramatically. Units are too low. Developers won't buy because building materials have gone up 40%. They work off margins on 20%. It's not stacking up for them, so they're not buying.
Tom Panos:You've got this building commissioner in New South Wales anyway who on the one hand, it looked like we're onto something good here. We've got a guy here who's going to make sure that we're going to get rid of these dodgy buildings. But what's he done in between this guy's slide down the whole process, you make some variation. Things go on the whole. Why do you think developers don't want to build? Because they know that the DA process is strung out to two years. I know it myself. I've had a DA out there. Right, I'm no big developer. I was just building three homes in Byron Bay. It's come through. I wasn't chasing it because my intention is not to build straight away, but I wanted to get a day. That was nearly two years and no builder wants to go off and build anymore.
Tom Panos:So why? Because the numbers don't stack up. So how do you make the numbers stack up? Think about it. How do you make the numbers stack up? Well, it's either building materials have got to go down. That's not happening. Prices never go down once they go up on materials or services. So then you say, oh, the development site, what they buy, has to drop. Or the other lever is the resale price of the units they build have to go higher, otherwise it doesn't stack up. And it's not stacking up at the moment. And because it's not stacking up, no one's building.
Tom Panos:But yet in the last year or so, half a million people entered into Australia. Half a million people, no, thinking about it. Where were you going to put them? Where do you think they're going to go? Do Even caravan parks? How many people can you put in detention centers, for God's sake? Yes, I am fired up because I'm always thinking to myself there's no thought process to it. You saw that at the moment with the, with the Roselle that you roadway that they built, oh, we're going to make it more efficient. It's been gridlocked. You've been hearing about it. Why? Because what they've done is band aid solution. Oh, let's sort that out, but there's a problem that you're causing there.
Tom Panos:Anyway, team, the point I'm making here is that it's really clear People that work in councils have to start doing some proper work, including Albanese. Yes, I'm fired up. Albanese has had more press conferences overseas than in Australia. I mean, I travel for work. I travel for work. I've got to tell you I find it damn tiring. It's really hard to do work when you're actually flying, going to hotels, check in, get out there. How does this guy actually do any work? How does he do any work? I'm just thinking. All these is going from one place to another. In that blue he is looking better. He's lost a few kilos. He should give that building commissioner his diet. He's got to go low carb, that guy. He's got buttons popping out of his shirt.
Tom Panos:Anyway, team, the point I'm making here is we've got an under supplier property because councils are not doing their job. They're you know. They just hang out in the office pretending to be busy. I'm sure that some council workers are good. They've got to start signing off things sooner. Das have to stop not being two years. You've got to shorten that process, right. So let's just talk about this for a moment, very quickly. What do you do? There's auctions right till the 23rd. I'm doing auctions right till Christmas day, right the day before Christmas. Anyway, what do we do on the 16th, which is next Saturday?
Tom Panos:If you're a real estate agent and you've got a property and there is zero interest in that property right now Zero interest in that property right now. You know what I suggest you do? I suggest that you take it off the market and you relaunch it back in the new year. New photos, new copywriting, maybe even a new price. Make it look like a new listing. Go speak to realestatecom, see what deals they've got there that you can relaunch your property on REA and what have you.
Tom Panos:That's what I would do. It. That's what I would do right now. I would take it off and I would relaunch in the new year If you've got no buyers. If you have got buyers, I'd be running it. If you've got potential buyers, I'd be running it. But if it's something right now, seven days out, there is zero interest. That's what I would do. And if you're a vendor and you're watching this right now and you're currently on the market or your property was up for auction today, I've got to tell you. If your agent gave you something within 5% of what you wanted, I would accept it right now. I would accept it. Cash is king. Anyway, team, I've got to go in. I've got a vendor meeting and then I've got a 545 auction.