Lots of buyers - but not many sales...
My Clearance Rate: 7/16 SOLD (and 1 auction tomorrow)
Here is an observation today. I had three reserves given to me today that had the number crossed out and had gone up, which does not really happen. So picture this they've set a reserve. Then they've changed their mind and increased the reserve and on all three occasions I actually asked the vendors why they changed the reserve and they said oh, because the market's good again. So it's incredible how the media can actually impact people. And there is all talk.
Speaker 1:Now rates are going to come down very soon and the buyers are going to be piling up and it's going to be off to the races. Well, slow down one moment. Look at the behavior of the RBA, its history, because the best prediction of the future is actually the past. And I can tell you that the past shows that rates go down a lot slower than when they went up, because the Reserve Bank is a conservative organization and will always be safety first. So don't think they're going to drop rates at an instant without putting a lot of thought, because they have been grappling with this inflation and they have had the interest rate as their tool. This is what they've had right as their tool. I can't see them actually, in the next month or so, just dropping down the rates. But what this has done this media about rate rises have paused and that the market's going to go great is actually impacting vendors. They've decided that they're increasing their reserve numbers, but as far as I'm concerned, the number of lookers versus the number of buyers pulling the trigger is not a great equation. I think there's a lot of people out there doing due diligence because they're factoring in that rates might drop and that there's going to be lots of buyers coming on the scene all of a sudden and prices might kick. So they're actually doing the due diligence so they can jump if they see the market move.
Speaker 1:I have seen no evidence today with 15 auctions and I don't think there's many auctioneers in Sydney today that was able to do a sample size of 15 properties across most of Sydney. I don't think that we have got fear of missing out anywhere near this market. Fear of missing out happens when buyers are scared that property prices are going to go crazy and they're going to miss out and that drives them to actually buy a property and pay even a figure that they weren't happy to pay. But they're scared that if they don't, they're going to miss out on the market. So team seven out of 15, that's the story. Vendors increasing reserves weird three of them happening. There's a guy across the road he's holding a rabbit. Looks like he's squeezing it. He's squeezing the neck of the rabbit. You shouldn't do that. There are buyers everywhere. Maybe they're not buyers, maybe they're lookers that one day may become a buyer, because, as far as I'm concerned, today's result did not reflect the crowds that are out there.
Speaker 1:I had 15 auctions and seven sold out of the 15, and out of those that sold included one that had sold prior. In reality, the hammer went down six times. I'm in Wally Park as we speak. It's actually three past seven and this auction started at six o'clock. It went for an hour. Well, the auction only went for 15 minutes, but I've been hanging around for the last 45 minutes trying to put a deal together with the agent and I'm very happy because it has happened. They're signing the contract right now for a unit for $760,000. Now, big auction sample size, by the way, lots of big auction numbers. I can't remember whether I did 15 auctions in a day last year. Anyway, it's good to be back. I've been back since Wednesday. I had four conferences in Melbourne. I've got an auctions tomorrow. I'll be honest with you. I just want to go for a run.