My Clearance Rate: 6/11 SOLD (and 2 auctions tomorrow).
This market is unpredictable and patchy.
So upset with this real estate industry of ours so upset Only a small group make it bad for the wider group. There's a small group of real estate agents out there that are very immoral. They're like arsonists. They have nothing to win but they're happy to see the misery on other people. And I was doing an auction today and what had actually happened is a real estate agent that had pitched for the business, that had missed out on the business, stayed in close relationship with a vendor, and that's a good thing. That's a good thing because you don't know what's going to happen and it's the right thing to do. You've missed a listing. Lose it with class, but not this guy no class at all. What he decided to do is to stay in contact with the owner and to be wishing them all the best and to ring them up yesterday and to tell them that he's been talking to buyers on other properties and that they indicated to him that they didn't want to buy his properties Hi, aaron, because they were going to go and bid on another property on Saturday and he told the vendors. He rang him up last night and he told the vendors you're going to get an incredible figure. There are two people that love your property. That distorts the vendors mind. They didn't exist. To top it all off. To top it all off, guess what? During the auction, one of the vendors was getting advice off this person, telling him. And then the vendor turned around and said is the Chinese better going to bid? Which Chinese better? I said to her she goes. Apparently there's someone here that's going to pay like 2.5 million. This is on a property that's worth around 1.7, 1.8. Do you understand the grubby act? Listen, I don't know who's watching this video right now.
Speaker 1:Most are agents, some are mortgage brokers. A lot of buyers and sellers look at it and sometimes they've got nothing to do with real estate. They're just keeping their eye on the market. But those of you that are real estate agents, please you miss out on a listing Don't become an arsonist. Don't go like fires because you're going to get joy out of seeing the other agent not sell it. Right, you might hate the other agent, but I've got to tell you, show some damn respect. People make decisions for their families, right, and show some damn respect.
Speaker 1:Anyway, thankfully this property sold and it got good money. But I say this because I think it happens in the industry a lot, I think. When a real estate agent loses it, they then what they want to do is sabotage the next agent, and the way that they'll do it is to actually try and distort. Yes, I agree, deborah, it's verging on unconscionable conduct, 100%. Anyway, what a patchy market.
Speaker 1:Man. This is the patchiest market. It's been like that for a while, like normally. When the market was good, it was good. Normally, when the market was bad, it was bad, it was more broad. But all of a sudden, in recent times, it's patchy.
Speaker 1:You go to one property and there are eight people. They've got fear of missing out, they want to pay top dollar, they go crazy and it sells for half a million dollars and the owner wants. And then you go to the next property, often two minutes away two minutes away, like today and there's no one. And even sometimes the second property is nicer than the first property. That's what I mean by it's just a patchy market. One goes off, one doesn't, and I have to tell you it makes it extremely challenging to get a clear pattern on values. It makes it very difficult when you go in and appraise the property because even right till the last hour of an auction you don't know whether there's going to be people there.
Speaker 1:I'm also going to tell you, whilst you had the impression that rate rises can come to an end and the next move might be rate rises coming down, you would have thought that that is the perfect environment for a market to flourish, because there's always the first move advantage buys. The ones that realize, hey, let's buy now, because when rates go down we're going to be fighting against all these other people at auction, so what they do is they jump in before. But that's actually not happening. What's happening is there is a lot of people circulating, a lot of people looking. They're collecting information, they're jumping on the buyer journey a lot earlier than previous. Right, so they could take many, many months, many months, even a year, to make up their mind.
Speaker 1:But I think what's happening right now is the 13 rate rises that we've had are beginning to create pain. The economists always say there's a lag of about a year between rates going up and people feeling it, and that's why, too, the numbers of inflation have been coming up really, really good. In fact, inflation has been totally smashed down. The only thing that's distorting inflation figures, making them even bigger than what they are at the moment. I'll tell you what it is. It's rents, because they use rents as part of the inflation calculation. You take that away and what you'll find is inflation has been impacted by a very strong component due to the rate rises. But now what we're doing is we're feeling the pain, and that concerns me as well, because it happened last week and it's happened this week.
Speaker 1:I've got vendors who decide at the last moment to increase reserves because they think to themselves the market is going to go up, let's push our price up. Let's push our price up. Anyway, team, that is the state of affairs. I'm actually doing auctions tomorrow as well. Just to fit them all in, I'm going to start working on Sundays. There's a fair bit of stock. That's probably why the buyer depth is sort of getting a little bit lower.
Speaker 1:And, yes, con, the pain of cost of living. Congratulations, reserve Bank, you achieved it. You wanted to create pain for the most vulnerable cohort of people. You've been able to achieve it. The wealthiest group of people. They're still on cloud nine because if they've got money in the bank, they're getting five, six percent and they're flying business class. And travel, of course, is another component that drives inflation, but the travel that's happening is happening from the rich people because overall travel my friend has come down A Marks and Bolly was great catching up with you and seeing your team at training this week. So cash stuff buyers are around.
Speaker 1:As you said, arty, it's two markets team. There's the mortgage market People that got mortgages. They're impacted. And there's the non-mortgage market no mortgages. They've got equity. They sell a home for 10 million, they buy another one for 12 million, probably the other two million. They're short, they just pull it out of their term deposits. So we've got two groups of people the rich with very little debt, cash buyers and those that are paying three times the interest rate they were paying two years ago. Anyway, team signing off, keep watching this space. Three weeks to A star, I think.