Election Economics: How Housing Policies Are Shaping the Political Landscape 🗞️ Real Estate Market Wrap

The property market is shifting, and here’s what’s making waves:

📊 Auction results are mixed as interest rate tweaks keep buyers on their toes.
🏠 Political campaigns are zeroing in on housing affordability—big changes could be ahead!
💰 Interest rate cuts might still happen, despite official statements saying otherwise.
🤖 AI is transforming real estate—agents who adapt will thrive!
📍 Zoning law changes matter more than ever for accurate property valuations.

My Clearance Rate: 8/11 SOLD

What was it like in your market?

Chapters

• 0:00 RBA's Stance on Interest Rates
• 24:00 Upcoming Elections and Housing Policies
• 1:00:00 Real Estate Tips and Buyer Interactions

Transcript

Tom Panos: 0:00

Yes, michelle Bollock did say that rates might not be coming down again because we've got inflation. But hey, I'm going to say something to you Don't listen to what they say, look at what they do. Hey, to everyone that's coming on. So today there was 11 auctions and 8 sold out of the 11. Last week there was 10 auctions and 10 sold out of 10. Last week. And obviously, like I said, I mean don't think that one rate cut of 0.25% changes the market. And I did have a buyer today say to me oh, I don't think there's going to be any more rate cuts. I don't agree with that. I think there will be more rate cuts because rate cuts are not one-offs. They they're done as a tool, they're used as a mechanism to actually influence behaviour. And he said to me oh yeah, but I can play you this video that the Reserve Bank Governor, michelle Bollock, has turned around and said that don't think that there's going to be more rate cuts this year. There could be a rate cut next year. Thank you, jared. So the bottom line is yes, michelle Bollock did say that rates might not be coming down again because we've got inflation. But hey, I'm going to say something to you, don't listen to what they say, look at what they do. You see, it would be stupid of Michelle Bollock to say, yes, we're going to start having rates dropping on a consistent basis. And I'll tell you why it's going to be stupid. Because if she did, people would go off and spend money and then that would defeat the purpose. So they're conditioning us as a society Same way that Dr Lowe, who was the previous boss of the RBA, would say oh, rates are not going up.

Tom Panos: 1:49

Rates are not going up. Borrow money, buy. He was scared during COVID that the whole place was going to collapse. So he wanted people to throw money right, like they were throwing money with their job, keep job, whatever. But what did they do? Rates went up 13 times, even though he said they're not going to go up. And she's saying, oh, they're not going to go down, but they will, right, they've started the process and there's a lot of pain out there. So 8 out of 11 um.

Tom Panos: 2:18

And I've got to say I do think rates are going to continue to go down. I think now it's any day, any moment. Now we are going to have an go down. I think now it's any day, any moment. Now we are going to have an election announced. I can already see the social media ads on all the platforms from the two political parties, the Liberal and Labor. They have started to flow over the last 48 hours.

Tom Panos: 2:40

And, what's interesting, if you listen to what Dutton and Albo are saying, everything that they're talking about about swinging the election to them is now moved to property. Albo was talking about interest rates and what he's done with them that they're dropping. Dutton is talking about housing unaffordability and the fact that the average house is now a million dollars and it's dearer to buy a property here than it is in pretty much every country in the world. So I've got to tell you that election expected any moment, any moment. So Malcolm Quinn is saying, barring a gaffe, the coalition is poised to win the election with its 50,000 superannuation policy. So let's talk about that for a moment. So so if Liberal gets in, dutton has said you will be able to get $50,000 out of your superannuation to use as a deposit if you're a first home buyer. And I've got to tell you there's a lot of people that post a federal election if Liberal wins are going to have $80,000 in their bank account and they're automatically a buyer for good real estate right 30 grand that they might have in the bank account already, and another 50, gives it 80 grand right. So obviously real estate is a demand and supply game. If you're going to supply a heap more buyers into the marketplace that are demanding, property prices are going to go up. So it's got to the stage where I rang up my daughter this morning after I auctioned a property in Erskineville that went for around $850,000. And I thought to myself she should be buying now. She's 21. She should be buying real estate now because I can tell that we're entering that cycle over the next one to two years. Migration is still happening, you know and yes, we've got the New South Wales government. Mins has gone off, as you know.

Tom Panos: 4:44

I reported it yesterday on Instagram that zoning changes are being changed with a new policy and that was gazetted and it basically means that if you're 800 meters from a hub be it trains, transport hubs 171 suburbs have had a change in the policy and that means if you're a real estate agent, you better get smart about it. If I was an agent selling real estate in an area, first thing I'd be doing on Monday morning is rocking up to the local council and just grasping everything I can about these new planning changes. Because when you're going out to a listing presentation, you have an obligation to have product knowledge. Product knowledge is going to give you confidence and confidence is going to give you influence and I've got to let you know. You have an obligation to the community to go out there. It's not an Uber driver that's going to advise your vendors on highest and best use. It is a real estate agent. So make sure, make sure that you go off and you are fully aware A to Z on what you can and can't do with these new zoning changes in Sydney.

Tom Panos: 5:53

So, getting back to what I was saying is all the policies that the governments are talking about are to do with housing. Housing is now the thing. It doesn't appear to be an election that's going to be won on environmental factors. It appears to be an election that's going to be won on cost of living factors and, in particular, in the cost of living factors, what it costs for a tenant or a buyer to own a home or a unit in this country. That is where the election is going to win.

Tom Panos: 6:24

I've got to share a story with you. I've been told that I'm going to get reported to the Office of Fair Trading by a buyer because he turned around. Actually, no, he didn't say he goes. Oh, I can't report you to the government because you haven't done anything wrong. But I'm going to give you a zero star review. This is a buyer that made a bid on a property that's worth probably around $900,000 or $850,000 thereabouts, made a bid at $600,000, then was only bidding in $1,000 bids. So I just thought to myself we're not getting anywhere here.

Tom Panos: 7:00

Our instructors from our vendor were put in a vendor bid. I put in a vendor bid of $850,000. We passed it in and we're going to go sell it as a for sale on Monday. As the buyer's walking out, he says I'm, I'm the highest bidder. I'd like to speak to the owner direct. I said you're not the highest bidder, sir, I hope he's watching this. I said you're not the highest bidder. I said the Vendor bid is the highest bid. I said you weren't the highest bidder. It's been passed in at 8.50. Anyway, he goes. I'd like to speak to the owner direct.

Tom Panos: 7:42

I went over and spoke to the owner. I said look, this buyer wants to speak to you, so she goes. Okay, we all go into the kitchen. I wasn't going to leave the lady there. She was on her own right. I wasn't going to leave her on her own, direct face to face with this buyer, you know look, he was a nice enough guy. Egyptian heritage, good negotiators, egyptian heritage buyers.

Tom Panos: 7:59

Anyway, cut a long story short. He starts and listen to what he says. Oh, we're a good family, blah, blah, blah, blah, blah, blah, you know. And essentially trying to buy the property at a significantly discounted price. And she said I'm not prepared to sell under $850,000. And I said I wouldn't let her sell under $850,000. I mean, it's worth it. Where can you buy a house for $850,000 in Sydney? Now, right, and he flips, he flips, he goes. You shouldn't be involved in this. It's her house. You shouldn't say that she shouldn't sell it at this price. I'm very upset. I'm going to give you a bad review, right, mate? Seriously, seriously, seriously. Listen, I'm going to let you know if you're a buyer that's watching this.

Tom Panos: 8:58

The number one way to not get an offer accepted from a vendor is to get the vendor to dislike you, right, and you know what that means. Don't be stupid with the way you go about making an offer right. So at the end of the day, I said to well, you go off and put a bad Google review on me because I told my owner don't sell at that price, which she wasn't going to sell at anyway. Right, she actually is the one that turned around and said no way. But why am I sharing this story with you? Because sometimes I actually find that when you do connect the buyer and the seller, it can help, because if they're nice people and they're compassionate and they get a bit of an understanding, the vendor might see them in different context. But to actually go direct to the owner, thinking to yourself, I'm going to be able to try and manipulate them to sell their property for 200 grand less, doesn't stand with me, man.

Tom Panos: 10:10

Anyway, gang, the final thing I want to let you know is you know what someone asked me today? He said to me what percentage of real estate agents, if they had to do a lie detector test what do they call it, a polygraph test or a drug test would pass the test. I don't know the answer to that. I really don't know. I'd love to get your views. What percentage of agents would pass a polygraph and drug test at a listing presentation? I'd like to know your answers below.

Tom Panos: 10:46

But apart from that, ladies and gentlemen, all I can tell you is the good real estate agents that have adopted AI and a lot of my real estate gym members now are using AI for vendor reports. They get their agent box and realestatecom report, put it in through AI, get an executive summary, and I've got to tell you there are real estate agents who are putting vendors' social media accounts through psychometric testing on AI before they do a listing presentation and they've been told this is the best way to actually present to these vendors. I think there have been three major revolutions in real estate. The first one, ladies and gentlemen, was franchises in the 80s. The second one was realestatecom, changing the industry. And the third one, I believe, is AI. And if you don't like change, you're going to hate extinction.