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Real Estate Market Wrap 🗞️ The Real Cause Behind the Housing Shortage

• Tom Panos - Real Estate Coach & Trainer

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💸 Luxury Price Drop – High-end homes with multi-million dollar price tags are feeling the squeeze as prices take a hit.
🗳 Election Impact – With the federal election looming, policy changes could shake things up, especially for first-home buyers!
🤝 Play Nice or Pay the Price – Aggressive negotiation tactics might do more harm than good. Relationships matter when bidding at auctions! 
👷‍♂️ Not Just a Housing Crisis – It’s a construction crisis, with a shortage of tradies pushing salaries sky-high and slowing builds.

My Clearance Rate: 5/11

Tom Panos:

This is a big lesson for every buyer out there that wants to play games and upset an owner with low offers, or then and I totally get it you want to try and get it as cheap as possible. Gentlemen, saturday afternoon, the normal Tom Panos catch up regarding real estate, auctions, business, politics, life in my 10 minute wrap and let's kick it all off. I am just parked across the road from an auction property and I can see the stickers going up as we speak, on a day that was nowhere near as good as what it has been the last three weeks. For me, the last three weeks, ladies and gentlemen, it's been 10 out of 10. One week, I think, 8 out of 11 and 12 out of 13. And I was sort of saying to you one hot day doesn't make a summer. And back into reality. Michael has a photos. How are you?

Tom Panos:

My friend, one of the great real estate agents of Australia, joins up. Why? Because he's immersed in real estate and wants to hear about everything. And I've got to tell you, ladies and gentlemen, as I'm looking across there, happy buyer outside the signboard Five out of by the way, there's a guy across the road five out of 11 today. Five out of 11. Yes, I'm missing the Tigers. It's just kicked off and I'm going to make this market wrap very quick because I do want to watch the Tigers, okay.

Tom Panos:

So firstly, I want to let you know there was a guy, there was a guy at this auction that said to me he goes, you're pretty brave driving a Tesla around at the moment. I go, why is that? And he turned around and he said oh, haven't you been seeing what's been going on in America? They're actually burning Teslas, they're burning Tesla charges, they're actually going into dealerships. And I've got to say to you, I've got to say to you I've been hearing about it, I've been seeing a little bit online. You know the world's turned against Elon Musk for various reasons. But I've got to say you got to think about it and I explained it to this guy vandalizing Teslas doesn't impact Elon Musk as much as what people think. For the record, elon Musk is the richest person in the world and only has 13% of Tesla shares. Okay, 13%, he might be the biggest shareholder, but it is hardly anything. Who do you penalize in America when you start vandalizing cars, burning dealerships? You impact staff lives, you impact people that buy shares, you impact the other 87% shareholders.

Tom Panos:

But people don't think Anyway, let's get back into real estate. So, five out of 11, five out of 11. And I've got to tell you. I've got to tell you one thing, and that is the market at the high end, at the high end, man, it's hurting the really expensive properties, the ones in the tens of millions that have been going gangbusters for years now. Well, let me tell you that run has come to an end. Some of them will go off, those really unique ones that everyone wants. But I'm seeing properties that should have got $20 million going for $15, right. And I can't tell you the amount of high-end deals where owners said no to offers last year and now are accepting offers under what they said no to. I'm seeing a lot of that. I'm seeing a lot of that. I'm seeing a lot of that.

Tom Panos:

And I've got to also say to you, ladies and gentlemen, that if you are a first home buyer and are watching this, the single thing you should be looking at every day is sport odds, federal election, labor versus Liberal, because if Liberal wins, one of their policies is allowing first-home buyers access to their superannuation or up to $50,000. That's going to bring a lot of first-home buyers into the market. That's going to push the first-home buyer price point up. So what you want to be doing is making sure that you're having a look at and seeing what the probability of an election going to Liberal versus Labor is. So that has been definitely one of the things I've got to say. Ladies and gentlemen, that is going to impact the market and you can look at TikTok, insta, facebook.

Tom Panos:

You have a look at both Albo and Dutton all they're talking about. They're not talking about climate change at the moment. They're talking about cost of all they're talking about. They're not talking about climate change at the moment. They're talking about cost of living and they're talking about predominantly real estate. So, yeah, the other thing that happened today is my 88-year-old father crashed his bloody car. Thank God he's okay, but he's getting too old to drive. But that's what's happening. They're having rejected offers from six months ago.

Tom Panos:

Now I'll tell you something that happened today. That's really interesting. There was a property and there was a buyer watching what the other buyer was going to do. Property gets passed in, then we start negotiating with the highest bidder. This other buyer is sitting from afar and watching and at the last minute, when that buyer gives us an offer to take to the vendor. He comes in and says, oh, I'm prepared to pay an extra 20. Right, then something happened. This other buyer went up. Then he goes, oh, I'll go up even more. Right, and what happened is the vendor got the shits.

Tom Panos:

The vendor got upset because this buyer was playing games and wouldn't bid during the auction. Have you ever seen the buyer that comes along to an auction doesn't bid? You know they're interested and then they loiter around to see if there's anyone else. Then they realize there's someone else. Then they actually say, oh, I'll pay, you'll pay a little bit more than them, right. And then you say, okay, well, letting you know, give us your best offer, because we're gonna sort of go wrap it up. You go in and then what they do is they always just want to pay a little bit more than the other one. But by that stage I've got to tell you our vendor was upset and I've got to tell you the vendor can turn around and say I'd rather sell to him. So in the end he chose the buyer he liked because he didn't get stuffed around with that buyer. He didn't get stuffed around with that buyer.

Tom Panos:

This is a big lesson for every buyer out there that wants to play games and upset an owner with low offers. Or then and I totally get it you want to try and get it as cheap as possible. But if you do it in a way that doesn't annoy an owner like giving increases of only $1,000 when they've come back and say you need to pay another hundred more and they say I'll give you another 500, $1,000 more All of a sudden you get owners that get upset. Now, if an owner is upset, they're not going to actually sell it to you, they would rather sell it to the buyer they like. And they will not only that, they will actually probably give a better price and better terms to the person that they like. And they will not only that, they will actually probably give a better price and better terms to the person that they like.

Tom Panos:

So what's the moral of the story? If you're a buyer, try not to get hated by the vendor. Right and understand. You're not buying a watch in Seminyak, where you go off, in Bali, where you go off and you just say, oh, I know that they're charging really high prices, so I'll go in really, really low. Anyway, I've got to tell you. So I put a post up the other day about the fact that we don't have a housing crisis. We have a construction crisis and that is what's causing all the issues.

Tom Panos:

Well, that story got picked up by the media traditional media and then the day after it was also run as a second time and on the front page, because the journo that I spoke to said that makes absolute sense. And I've got to tell you, when you've got tradespeople that command salaries of a thousand bucks a day and I'm not saying they're not worth it, they're worth it because they're worth it if the market's prepared to pay it. But you know why they're worth it? Because there's a shortage of tradespeople, right? So when there's a shortage of tradespeople, the value of the tradesperson goes up. And you want to know why there's a shortage of tradespeople? Because even at schools woodwork, metalwork, all those things they're not really a thing that is really encouraged now.

Tom Panos:

So you've got every kid that's coming out wants to become a podcaster, an influencer, a YouTuber, right? I've got to tell you, for every 10,000 podcasters, right, there's one that actually makes some money because they get some sort of sponsorship. How else are you going to get money? These young people going around with their microphones podcasters where are they going to make money? Grab yourself a saw, start sawing and you're going to get five to six thousand bucks a week, ladies and gentlemen. Then you put that money into property or another asset class and you'll make a hell of a lot more money than you thinking that you're going to be the next Joe Rogan.