Expectations vs. Reality: Lots of Buyers, But Barely Any Bidding

My Real Estate Market Wrap, and predictions for February 

Transcript

Speaker 1 0:00

There is masses out there . The buyers have gone out there looking , but are they buyers pulling the trigger ? Not the first day back for 2020 for doing real estate auctions and I'm going to let you know it wasn't a great day in terms of results . I left Byron Bay yesterday afternoon thinking to myself I'm going to go back to Sydney and the buyers are going to be lining up , because I've heard there have been massive crowds hitting the real estate open for inspections . But unfortunately for me for today , that's what it was . It was crowds watching , and I've spoken to a number of other auctioneers and real estate agents , particularly agents that do high volume , and they're telling me what they think is happening is that there is masses out there . The buyers have gone out there looking , but are they buyers pulling the trigger ? Not , and it doesn't surprise me , because in January you get a lot of people going out looking at property and it looks like it's more people than what there really is , because there's less properties on the market this time of the year . So all the buyers get squashed up into a smaller number of properties for sale and auction and open for inspection , and that's why it looks like we've had great numbers through the property . That's what I just . Oh , the numbers were great . They were numbers were great , but I can tell you that's one of the reasons why there looks like there's a lot of buyers . And the second thing is there is people out there , but they've got time on their hands , often still in holiday mode , sometimes new year resolution mode . Let's see what properties like at the moment .

Speaker 1 2:03

More curious than actually buying . And today I did four auctions one sold prior , to sold prior and two did not sell on the day or came close to selling , for that matter . So probably the most interesting thing that happened to me today was a guy that I got into a conversation with . He had a girlfriend that would have been half his age you know the type , you know looking good Bit of the midlife crisis thing , going on sports car came to register on a property , could have bought that property for around a million wooden bid . I said to him how would you feel about putting a bid in at 500 ?

Speaker 1 2:59

No , spoke to him after the auction and I said to him I'm just curious , what do you think this property is worth ? He said to me probably a million . I said okay . I said it's a hot day here in Sydney . I said you've come along and you've registered . What were your intentions when you registered ? He says I just wanted to see how it went . I said you know you can actually see how a property goes without registry . He goes yeah , I know that I was just wanted to see if I was going to bid , if it was a good opportunity . I said well , I want to ask you . You've just said to me you think it's worth around a million , it's worth around a million . I'm asking you whether you'd like , since you're registered , to see whether we put something to the owner at 500 . And you're saying no and he goes oh , let me think about it .

Speaker 1 4:02

Anyway , I've got to tell you , guys and girls , I've always been fascinated about people that come along can potentially buy a property at half the price . Real estate agents know what I'm talking about . They come and register and then they don't do anything , even when you can basically get it at a bargain basement price , or even if you were talking about , even if you were to get it for 500 grand under market value . But I've got to tell you what it is . It's very simple . Sometimes guys to look like they're a heavy property hitter . That's the fact Right , and that's the category that I think this guy was in their team . But I've got to say to you , I've got to say to you , I think that in February , on the first week when the Reserve Bank meets , we're going to have a very , very good insight into where we're at with things .

Speaker 1 5:08

John Callionators calls him a tire kicker . He was just trying to impress her . He was trying to impress her . I've done it before , by the way . I've done it before . I won't go into the detail here , but I've actually exposed people like that in the past . Anyway , team I sold no properties , that option . Luckily , two of them sold prior . Keep your eyes out on the Reserve Bank meeting . But , more importantly , right now , don't worry about the clearance rate . Right now , there is no volume , there's no volume . Thank you , johnny . There is no volume out there . And when there's no volume , there's no listings . The numbers that you're going to get are really insignificant . When's most of the stock going to be on the market ? Mid-fed anyway ? Team signing off .