Real Estate Market Wrap 🗞️ Why property prices are still predicted to go up

03:41 – Vendors rejected offers, then sold at lower figures 

04:02 – Be a chameleon 

05:55 – Two weeks until AREC25, which ones am I looking forward to

My Clearance Rate: 9/13 SOLD

Transcript

Interest Rate Cuts Coming

Speaker 1 0:00

It's not bad . There's a view out there with some of the buyers They've been reading that rates are coming down . There are banks forecasting that there will be a 1% drop , either done in quarter percent drops , or maybe a quarter drop in May , and then another quarter , maybe the following month , and then another quarter , maybe the following month , and maybe we're going to have a drop of around half a percent in one month . There are some people saying that we might have a half a percent in May . But there is a feeling now that Easter's out of the way , anzac Day's out of the way , the election's out of the way , and I'm letting you know greetings , aaron . And I'm letting you know there is a feeling out there that we are about to have rate cuts and that's given buyers a little bit of anxiety . I think thinking will there be a lot more buyers out there when rates drop ? So that's where we're at , ladies and gentlemen , and I've got to tell you that I had to do a presentation

Labor's Property Initiatives Explained

Speaker 1 1:07

this week . That included talking to a broad group of people , including developers , and I sat down and I did a very quick analysis of Labor's policies on property .

Speaker 1 1:19

Now that we know that they're going to be in government for at least another three years . And they've got a number of initiatives there One where you go in there and they'll buy a property with you . They're prepared to be a 30% shareholder in a property with you to first home buyers . If it's a brand new property , they'll come in as a 40% business partner , or if it's an existing property established property it'll be 30% . They've got various schemes involved that allow you to buy a property and that's the biggest one of all . The biggest initiative they have is that you can buy a property with only a 5% deposit and that will mean that you won't have to get mortgage insurance under that scheme . And there's a heap of other initiatives . But when you add up all those initiatives , you still end up having a shortage of properties and that means prices will continue to go up . In fact , if we were to look at the numbers on a run rate as of now , there is a target of 1.2 million homes that need to be built . But

Housing Shortage Driving Prices Up

Speaker 1 2:42

based on this current run rate , they're going to end up being short by $400,000 to $500,000 .

Speaker 1 2:48

And I'm not going to sit there and point my finger and say governments are incompetent and that's why they're behind . I'm going to say to you . They also have the same issues that everyone has at the moment in the real estate game , and that is high material costs , difficult to define , labour , labour shortages , planning delays , the list goes on . I think we've got to accept the sooner you can actually own a piece of real estate in the core parts of Australia , the safer you'll be , and that's why I'm saying to people I wouldn't worry about paying 5 or 10 or 15 or 20 extra . If you really want that property , have to say that I've seen a few instances of owners in the last few weeks that have rejected offers and then have sold those properties at lower figures . It actually happened today on a property that I was involved in .

Speaker 1 3:56

So , ladies and gentlemen , and I've got to tell you one of the things you've got to always be doing , and

Adapting Auction Style By Community

Speaker 1 4:01

I am right now . I've got a tell you one of the things you've got to always be doing , and I am right now . I've got a very strong Indian community at this last property and one of the buyers was here and they actually saw me auction a property in Newtown last week and they said you change your approach , hey , mel , how are you going ? You change your approach when you're in Newtown . I've got to tell you I change my approach in every area . I start in the inner west Newtown , chippendale , darlington in the mornings and there you've got a strong professional community in a city Some people used to call those people yuppies very strong gay community . So I've got plenty of vendors , often who are in same-sex relationships , less kids in that area , less family-oriented , lots of two individual households and in that marketplace the auctions are different . And then I'll move into an area like Asheville where you've got a strong Asian community and things are different there . Then I'll go to Greenacre and it'll be a strong Arabic community and what I'll have to do there is you know , joke , you know , speak a few words , their language , build rapport . Then you'll come out to places like Campbelltown where you've got Barry and Shazza and the world's different . I'm not saying you change your personality , but what you do is you adjust , you adjust . So I'm just going to finish off on this point . There are some areas I go to . I used to laugh . I used to go to some areas and there were more relatives than bidders . You know , the ones where you get the Greeks , italians . They've got 100 relatives at the auction and only two bidders .

Speaker 1 5:48

One final thing I want to say before I leave to all the real estate agents out there two weeks to ARIC , two weeks to the great conference that we have

ARIC Conference Preview

Speaker 1 6:00

every year . Again , I'll be hosting it , like I have for the last couple of decades . There's some great speakers . Maurizio is the one that I'm looking forward to . Maurizio , amazing agent in New York , and he's one of the keynote speakers . Robin Banks , of course , kamala Harris . We've got some of the greatest real estate talent in Australia speaking as well , people that are out there in the field doing it . So I looked at the flights . There's flights still available . You can return to the Gold Coast from Sydney , melbourne for a couple of hundred bucks . So that's the 20 , I think 20, . It's two weeks from now and that's where I'll be heading , but I will work that day . Anyway , ladies and gentlemen , and a big congratulations to the Bulldogs . I've been told they have had a miraculous comeback . Well done , and on that point I'm going to say goodnight . I'm going in there and see what we can do about this deal .