Interest rates are not going down anytime soon. Have a look at the unemployment rate.
My Clearance Rate Today: 11/14 SOLD
Tom Panos:
Two bidders are bidding against each other, but they ended up being quite known to each other and I believe that they were working together to try and influence the result, which is going to be hard to prove. But what actually happened is this they're bidding and the bidding stops. It's under the reserve price and what actually happens is the guy turns around or one of the bidders turns around, so listen to this story turns around and says I'm not bidding unless the owner puts it on the market right now, I won't bid. Right. But what in fact he was doing was trying to get the vendor to put it on the market and then not bid so his mate can actually buy it at that figure it was, in my mind, under market value and I actually said to them I'm not going to be putting it on the market. And he said to me oh well, go ask the owner. I said I'm going to go tell the owner that I think that they should be passing it in and negotiating it afterwards and I won't let our owner sell at that figure. Anyway, you got passed in and it was one of the ones that hasn't sold yet and I wouldn't let the owner sell it at that price. It's too cheap. Anyway, let's move on.
Tom Panos:
I've got to say to you the largest number of auctions in Australia since this week in 2022. Why was it this week, team? Very simple, because the week before Easter, which is also just before Anzac Day, which is also just before school holidays, means that vendors get an uninterrupted three to four week campaign and a lot of people. There'll be hardly any auctions next weekend because of the Easter weekend, but what actually happens is that all the vendors put it on the market and that's why, to me, the week before Easter is, in fact, the real super Saturday. Today I was expecting a much harder day because there was 3500 auctions across Australia, and that says to me whenever you've got high volume, you've got a higher chance of having a lower clearance rate, because there's more stock on the market.
Tom Panos:
But there's buyers. There's buyer depth there. There's buyer depth there. It's still as patchy as ever. Some people are struggling, other people are cashed up and I think that there's a group of buyers that are sitting there and they're thinking to themselves should I buy now? Should I wait? Should I actually take the risk when rates go down, whenever they do? And we don't know that.
Tom Panos:
But one thing is for sure the unemployment numbers surprised everyone this week. Unemployment went down and I need you to know. When unemployment goes down, that means it's less likely you'll have a rate cut soon, and the reason why is that rate cuts happen when there's pain and suffering in an economy. So, yes, quite frankly, to be honest with you, that's what the government wants. What the government wants is pain and suffering. What the government wants is unemployment Right.
Tom Panos:
But when there is very little unemployment and it actually went down from, I think, four and a half to three and a half percent was announced last week or this week that's gone by it's basically saying to the government hey, you know what? We shouldn't be taking rates down yet. We shouldn't be taking down rates down. And also, you also need to know when rates do go down. They're going to be going down really slowly. You're going to have this reserve bank sitting there saying, no, let's not overstep the mark. So anyone that's watching this that is thinking to themselves their loan repayments are going to go back to what they used to very soon not happening anytime soon, anytime soon. Those of you that are thinking to yourselves that rates are going to go back to where they were not for some time. I think we better get used to. This is life, anyway. Team signing off.