7 figure Attraction Agent

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

• Tom Panos - Real Estate Coach & Trainer

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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

Speaker 1:

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 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:

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

Speaker 1:

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:

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

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 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.