Real Estate Market Wrap 🗞️ We’re going to have a ripper Spring!

The boom is coming to an end. Tough times don’t last - tough agents do.

When there’s a lot of stock on the market, PRICING is critical.

Here’s my best advice for agents, buyers and sellers...

Transcript

Speaker 1: 0:00

We are about to have an absolute ripper spring in Australia. When I say an absolute ripper spring, I'm talking about volumes, real estate. For those of you that are real estate agents on here understand we are a volume-based business. Whether the market is going up or whether the market is going down, it is irrelevant. What we care about is transactions, and I'm about to tell you we're going to have a heap of transactions starting from late August all the way to Christmas. All the data, including the companies that do CMAs. So, if you think about it, a CMA is done by companies like CoreLogic, you know, price Finder, sqm, and they can see the activity that is put into the system by real estate agents that are getting market appraisals, and it is sky high. So that basically means that we're going to have a lot of sellers selling in spring, which of you've always had my view, and that is not the greatest idea if you're a seller, to be selling when everyone else decides to sell at the same time, and that's why I think right now, mid-july to mid-August is a critical time for real estate agents for spring. The conversations that you're having at the moment are the conversations that are going to lead to you popping into living rooms, you signing up listings and you launching listings in September, critical period and of course, you've always known I have a preference for a list now, launch later strategy, which can also be code named the pocket listing where you actually get an owner to give you an authority to be able to start work and, if there is a buyer around during the winter months, that you're able to show that buyer the property. But if and you don't launch it, because I know a lot of vendors don't want to launch and then what you actually do is, if you haven't sold it over the winter period, what you do then is you actually launch in spring. So that would, to me, the real estate strategy that you should be using at the moment.

Speaker 1: 2:27

Team, it is so hot here. By the way, in a moment I am going to actually let's just get this gimbal moving there. Right, that is not a Photoshop man, that is the actual view. So the next thing I was going to say is the other there's going to be a lot of stock. So it stands to reason. When you've got a lot of stock on the market, which we will have in spring, pricing is going to be critical. So right now, there's no question about it.

Speaker 1: 3:00

The boom across Australia is coming to an end. Sydney and Melbourne has actually been challenging. Of course I'm not talking about the 10 bidder property, which there's always some of those. Every weekend of the transactions, a little bit of uncertainty, a little bit of fear, no clarity with what the Reserve Bank's going to do, and deals are being harder to put together. We know that. So when you layer that with an increase in stock level in spring, and then you layer that with a decision from the RBA to maybe lift rates, you're going to have to understand that all of a sudden, the rest of this year in real estate calendar year is all about vendor management.

Speaker 1: 3:55

Tough times don't last, but tough people do. And I'm not talking about the sledgehammer agent. I'm not talking about those stupid agents that go in quote high to get the listing go out and under quote to get buyers interested and then just hammer away. What I'm talking about is going in there at a listing presentation and not letting price dictate. Your marketing campaign in the first four weeks, your marketing campaign in the first four weeks. Okay, hey, deborah, good to see you. Good to see you, johnny Dwyer.

Speaker 1: 4:30

There will be a full-on recession within three months in Australia and it will hit hard, says John Dyer. Look, if I agree with you, that could possibly make us both wrong. I don't have a monopoly on the truth, right? No one has a monopoly on the truth and, quite frankly, after all these years 38, 39 years in this business I can tell you no one knows. That's a fact. The Reserve Bank doesn't know. No one knows because if we all knew, we'd all be retired multimillionaires out of property. So team pricing is critical.

Speaker 1: 5:02

The next thing is I've got to tell you list what sells. You've heard me say that over and over again. Great real estate agents have a good understanding of the kind of property that is going to sell. Right, not all kinds of properties sell. Obviously, price dictates whether a property is going to sell overall and when you adjust the price a magical buyer always appears. But what I'm talking about is that in any marketplace the kind of product is attractive at a specific time. Four years ago, the fixer uppers is what people wanted In 2024, in July they want turnkey properties ready to move in. In addition to that, aaron says go the Roosters. I presume that they're winning. I've actually totally lost track of rugby league. So, team, list what sells, what is the kind of product in your market, and put your time and energy into that kind of property. The last thing I was going to say to you, team, and it's super, super critical. Last thing I was going to say to you, tim, and it's super super critical In a market like this, where it is a little bit chaotic and the world is a little bit in chaos, because if you're going to consume daily content from the media, it would be easy to start thinking to yourself things are looking appalling.

Speaker 1: 6:23

But in fact, particularly those of you that are in Australia and New Zealand what a wonderful report that was given during the week. Australia and New Zealand are up there in the top 10 countries for millionaires. That is when you look at someone's net wealth. We are a lucky part of the world. Even as I'm sitting here in Greece, I've got to tell you the prices of food, groceries, all that it's pretty much on par with Australia.

Speaker 1: 6:53

There's only one difference Cost of living is the same, but income per month is significantly lower. To give you an idea, a $30 an hour job gets amortised in Australia, gets amortised in this part of Greece at $10 an hour. That is a third of the price, yet cost of living is similar. So you can imagine why. I believe, of course we've won the birth lottery and I officially and I've never done it thank my father and mother online for the wonderful decision that they have made. And it might have been strategic, it might have been luck, but it's ended up becoming an extraordinary decision. I was brought up, born, educated in the best country in the world Australia. Thank you, mum and dad.