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

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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

Episode Transcript

Tom Panos (00:00):
This is a big lesson for every buyer out there that
wants to play games and upset anowner with low offers, or then
and I totally get it you want totry and get it as cheap as
possible.
Gentlemen, saturday afternoon,the normal Tom Panos catch up

(00:26):
regarding real estate, auctions,business, politics, life in my
10 minute wrap and let's kick itall off.
I am just parked across theroad from an auction property
and I can see the stickers goingup as we speak, on a day that
was nowhere near as good as whatit has been the last three

(00:49):
weeks.
For me, the last three weeks,ladies and gentlemen, it's been
10 out of 10.
One week, I think, 8 out of 11and 12 out of 13.
And I was sort of saying to youone hot day doesn't make a
summer.
And back into reality.
Michael has a photos.
How are you?
My friend, one of the great realestate agents of Australia,
joins up.

(01:10):
Why?
Because he's immersed in realestate and wants to hear about
everything.
And I've got to tell you,ladies and gentlemen, as I'm
looking across there, happybuyer outside the signboard Five
out of by the way, there's aguy across the road five out of
11 today.
Five out of 11.

(01:32):
Yes, I'm missing the Tigers.
It's just kicked off and I'mgoing to make this market wrap
very quick because I do want towatch the Tigers, okay.
So firstly, I want to let youknow there was a guy, there was
a guy at this auction that saidto me he goes, you're pretty
brave driving a Tesla around atthe moment.
I go, why is that?
And he turned around and hesaid oh, haven't you been seeing
what's been going on in America?
They're actually burning Teslas, they're burning Tesla charges,

(01:56):
they're actually going intodealerships.
And I've got to say to you,I've got to say to you I've been
hearing about it, I've beenseeing a little bit online.
You know the world's turnedagainst Elon Musk for various
reasons.
But I've got to say you got tothink about it and I explained
it to this guy vandalizingTeslas doesn't impact Elon Musk

(02:23):
as much as what people think.
For the record, elon Musk isthe richest person in the world
and only has 13% of Tesla shares.
Okay, 13%, he might be thebiggest shareholder, but it is

(02:49):
hardly anything.
Who do you penalize in Americawhen you start vandalizing cars,
burning dealerships?
You impact staff lives, youimpact people that buy shares,
you impact the other 87%shareholders.
But people don't think Anyway,let's get back into real estate.

(03:10):
So, five out of 11, five out of11.
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 onesin the tens of millions that

(03:33):
have been going gangbusters foryears now.
Well, let me tell you that runhas come to an end.
Some of them will go off, thosereally unique ones that
everyone wants.
But I'm seeing properties thatshould have got $20 million
going for $15, right.

(03:53):
And I can't tell you the amountof high-end deals where owners
said no to offers last year andnow 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.
And I've got to also say to you,ladies and gentlemen, that if

(04:20):
you are a first home buyer andare watching this, the single
thing you should be looking atevery day is sport odds, federal
election, labor versus Liberal,because if Liberal wins, one of
their policies is allowingfirst-home buyers access to
their superannuation or up to$50,000.
That's going to bring a lot offirst-home buyers into the
market.
That's going to push thefirst-home buyer price point up.

(04:41):
So what you want to be doing ismaking sure that you're having
a look at and seeing what theprobability of an election going
to Liberal versus Labor is.
So that has been definitely oneof the things I've got to say.
Ladies and gentlemen, that isgoing to impact the market and

(05:02):
you can look at TikTok, insta,facebook.
You have a look at both Albo andDutton all they're talking
about.
They're not talking aboutclimate change at the moment.
They're talking about cost ofall they're talking about.
They're not talking aboutclimate change at the moment.
They're talking about cost ofliving and they're talking about
predominantly real estate.
So, yeah, the other thing thathappened today is my 88-year-old
father crashed his bloody car.
Thank God he's okay, but he'sgetting too old to drive.

(05:26):
But that's what's happening.
They're having rejected offersfrom six months ago.
Now I'll tell you something thathappened today.
That's really interesting.
There was a property and therewas a buyer watching what the
other buyer was going to do.
Property gets passed in, thenwe start negotiating with the
highest bidder.
This other buyer is sittingfrom afar and watching and at

(05:50):
the last minute, when that buyergives us an offer to take to
the vendor.
He comes in and says, oh, I'mprepared to pay an extra 20.
Right, then something happened.
This other buyer went up.
Then he goes, oh, I'll go upeven more.
Right, and what happened is thevendor got the shits.

(06:12):
The vendor got upset becausethis buyer was playing games and
wouldn't bid during the auction.
Have you ever seen the buyerthat comes along to an auction
doesn't bid?
You know they're interested andthen they loiter around to see
if there's anyone else.
Then they realize there'ssomeone else.
Then they actually say, oh,I'll pay, you'll pay a little
bit more than them, right.

(06:33):
And then you say, okay, well,letting you know, give us your
best offer, because we're gonnasort of go wrap it up.
You go in and then what they dois they always just want to pay
a little bit more than theother one.
But by that stage I've got totell you our vendor was upset

(06:54):
and I've got to tell you thevendor can turn around and say
I'd rather sell to him.
So in the end he chose thebuyer he liked because he didn't
get stuffed around with thatbuyer.
He didn't get stuffed aroundwith that buyer.
This is a big lesson for everybuyer out there that wants to
play games and upset an ownerwith low offers.

(07:16):
Or then and I totally get ityou want to try and get it as
cheap as possible.
But if you do it in a way thatdoesn't annoy an owner like
giving increases of only $1,000when they've come back and say
you need to pay another hundredmore and they say I'll give you
another 500, $1,000 more All ofa sudden you get owners that get

(07:37):
upset.
Now, if an owner is upset,they're not going to actually
sell it to you, they wouldrather sell it to the buyer they
like.
And they will not only that,they will actually probably give
a better price and better termsto the person that they like.
And they will not only that,they will actually probably give
a better price and better termsto the person that they like.
So what's the moral of the story?
If you're a buyer, try not toget hated by the vendor.

(07:58):
Right and understand.
You're not buying a watch inSeminyak, where you go off, in
Bali, where you go off and youjust say, oh, I know that
they're charging really highprices, so I'll go in really,
really low.
Anyway, I've got to tell you.
So I put a post up the otherday about the fact that we don't
have a housing crisis.

(08:19):
We have a construction crisisand that is what's causing all
the issues.
Well, that story got picked upby the media traditional media
and then the day after it wasalso run as a second time and on
the front page, because thejourno that I spoke to said that
makes absolute sense.
And I've got to tell you, whenyou've got tradespeople that

(08:42):
command salaries of a thousandbucks a day and I'm not saying
they're not worth it, they'reworth it because they're worth
it if the market's prepared topay it.
But you know why they're worthit?
Because there's a shortage oftradespeople, right?
So when there's a shortage oftradespeople, the value of the
tradesperson goes up.

(09:02):
And you want to know whythere's a shortage of
tradespeople?
Because even at schoolswoodwork, metalwork, all those
things they're not really athing that is really encouraged
now.
So you've got every kid that'scoming out wants to become a
podcaster, an influencer, aYouTuber, right?
I've got to tell you, for every10,000 podcasters, right,

(09:26):
there's one that actually makessome money because they get some
sort of sponsorship.
How else are you going to getmoney?
These young people going aroundwith their microphones
podcasters where are they goingto make money?
Grab yourself a saw, startsawing and you're going to get
five to six thousand bucks aweek, ladies and gentlemen.

(09:46):
Then you put that money intoproperty or another asset class
and you'll make a hell of a lotmore money than you thinking
that you're going to be the nextJoe Rogan.