7 figure Attraction Agent

The Hardest Part Isn’t Managing Prices 🗞️ Real Estate Market Wrap

• Tom Panos - Real Estate Coach & Trainer

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  • 00:00 – February is the month that matters as stock floods the market before Easter
  • 01:42 – Siblings fighting over money is one of the saddest things I see
  • 03:44 – A rate rise is likely this week, but how significant will it be?
  • 04:30 – I’m surprised by how strong property prices are right now
  • 06:38 – Buyers are going to be spoilt for choice


My Clearance Rate: 75%

Tom Panos:

February is the month that matters. February has got by the way the stock levels that are hitting the market is beyond belief. The amount of stock that is hitting the real estate market since Tuesday this week is just bizarre. So much stock. And that basically means that buyers are going to have a lot to choose from from pretty much next week onwards. Now I'm going to say to you, there's going to be a lot of compressed listings on the market over the next two months. When I say compressed, what I'm talking about is everyone's going to try and get their property sold in between now and Easter. And it is a very early Easter. So what you'll be seeing is February and March having massive amounts of stock levels. And also I can tell you that having spoken to a few auctioneers today, they also told me the few properties, there's very few auctions today, the few properties that were auctioned, um, got decent money. Thank you, Andrew. Thank you, Andrew. I show a lot of my options. Well, the ones that I think are going to sell and they're going to be exciting. The truth is, if they're not going to sell and the agent says to me, You're wasting your time, there's no buyers, I'm not going to put it on because I don't think it's good theater. People don't like to look at that. I mean, they can tell what the clearance rate is by the percentage of properties that get sold, and today's percentage is 75%. I have to say, one of the saddest things I see in real estate, and uh I was thinking about it. I actually saw the sister today. So I walked into a house some time ago, three brothers and a sister, and it was a deceased estate, their mum and dad's house, right? And they ended up. Money brings out the worst in people. It really does. Then watching siblings argue over money, particularly when someone like me who has no siblings left in their life, the young young brother I have passed away. And when I see siblings fighting over money at auctions, and what had happened in this specific instance was the property was a hundred grand short of the reserve. Um when I asked the four beneficiaries, the kids, did they want to uh pass it in or did they want to reduce the reserve, they couldn't come to an agreement, and then they started arguing. One of them turned around and actually said to the other, You're a vulture. You've come here for the first time in 30 years. You never visited mum and dad, and you've showed up as the first person here this morning because there's money involved. And after he said that, man, it went on and on. The only person that actually behaved well was actually the sister. She was just crying, and she did come up to me at the end. She did come up to me at the end and say, I'm sorry you had to see all of that. And I want to let you know, my mother and my father were beautiful people that did everything for the four of us, and they would be turning in their grave. We see these things in real estate, and I, you know. It's really sad to actually see people brought up from the age zero, like they come out of the stomach, they're super, super, super close, and then when they're 40, 50, 60, they fall apart and argue over money. I'm gonna say to you, there is most likely a rate rise this week, okay, coming up. We're gonna get a rate rise. I don't know whether that rate rise is gonna have like a significant effect, not in the lower price point. I said that at Channel 7 this week because there are just so many buyers at the lower price point that even if um 25% of those pulled out, right, you still got plenty. Even if half of them pulled out, you'd still have two, three bidding on properties, right? So uh thank you, Cameron. It's good to be back. There's a question there, there's so much demand, it wouldn't surprise me if house prices still uh book even. There's yes, look, I've got to tell you, I'm look, today I am surprised at how strong prices were. I'm surprised how strong they were, right? Like things that had reserves of around$1,250 were selling at$1,550 one of them, right? So I'm surprised. And all I can really say to you is that the decisions that were made today were already made by people and it was irrelevant to them. They wanted that house, they had to buy a house, and the consumer price index numbers that came through during the week were irrelevant to them. They had already been factored in. I'm buying. There were four options I did. One in Auburn sold for about 250 grand more than the reserve. And I want to let you know, in addition to that, don't worry, the guide and the reserve price were aligned. And that's quite different. That's quite different to uh underquoting. Um the one unique thing that you look at is was the price guide and the reserve aligned. That's pretty much the rule. So I've got to say to you, four auctions today. Out of the four, three sold. The last one didn't sell. Uh the ones that did sell, let me go through them. Auburn sold for around 250 over. Lacemba sold for under the reserve, but a good price, I think. I think the owner was being optimistic. And then we had one in Burwood that also sold for, I think, around 100, 200 over reserve, and then one in Greystones didn't sell in the end, had been rescheduled from last year and did not sell. It really doesn't matter if you're trying to put your finger on what the market's doing. January is not the month to decide. And the reason why is stock levels are so low that you often get a misread on the market. Good out, good to see you. Good to see you. Shout out to Carmen. Well done. Happy birthday. I don't know who Jeremiah is, and I don't know who Carmen is, but you're born, so happy birthday. So I've got to say to you that so stock levels, ladies and gentlemen, look out for it. If you're a buyer, you should be really, really happy. If you're a tenant, you should be happier than other years because a lot of these uh people that are on the first home buyer scheme were tenants. Um, in fact, I would say if they weren't living at home, they were all tenants. So, yes. Uh team, I've got to say, we're back in business. We've got eight straight weeks or thereabouts before we start uh our next break, Easter. Tommy, are you going to the Sydney Derby? Yes, I am, David, and I am predicting a Sydney FC win 3-2. What is the average mortgage loan in Sydney about a mil cap? Anyway, team, I've got to say, by the way, I had someone ask me today whether they should leave Sydney, Melbourne, well, this guy was in Sydney, leave metro areas and go work in the coast, up the coast, up Byron Bay or Port Macquarie. Listen, for many people, it's not a bad idea. You might make less money, but you might be a lot happier. Because if you enjoy the sun, if you enjoy the sea, if you uh are finding that living in Sydney or Melbourne, I mean Melbourne, Melbourne, like everyone seems to have cleared out of Melbourne, gone to Byron. Everyone I was speaking to in Byron, where are you from? Were you born here? No, no, came from Melbourne. When'd you come here? Oh, during COVID, right? Are you gonna go back? No way. That's what they're saying to me. No way. So if you're a real estate agent, you can go work in a coastal area. You'll probably work a little bit less, because they like to go to the beach, so they probably don't work as long. Um the good ones, the good ones, they still make good money, but they don't make the money that you would in prime metro marketplaces, both because of price points and because of volume. So, yeah. Anyway, ladies and gentlemen, you'll be seeing me every Saturday afternoon where I'll be giving you a pulse of the market. Really, don't read into anything from me or the media for the month of January. February is where it ticks in. Let's see what happens on Tuesday, Wednesday when uh the Reserve Bank meets, and then let's start having a look at results from the middle of February. But I've got to say to you if you're a buyer, you're gonna be spoiled for choice over the next few weeks.