Real Estate Market Wrap: The Changeover Figure

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The market has never been this unpredictable, and we can’t work out why...

Episode Transcript

Speaker 1 (00:00):
There's no question about it.
There is a sense of optimism inthe real estate market with
what's happening with interestrates.
However, what I will say isthat a lot of the vendors have
actually embraced the ratesgoing down and have decided that
they're going to up theirreserves or their expectations.

(00:22):
A lot of them have every rightto do that right and that's not
a real problem.
Practically, if you're sellingan asset and you want to get as
much money as you can for it andyou're not worried about
rebuying in the market, becauseif you increase the reserve by

(00:44):
$100,000 and you don't get yourprice and you can keep it and
you can just hang on to it andthen you might wait two, three
years and then sell it, then hey, John, and life's good.
But for most people that I'mselling auctions for good, but

(01:08):
for most people that I'm sellingauctions for they're actually
buying other houses and morethan half are normally buying
something that's better.
So I find that my job often isto help a vendor understand that
if you were to wait for thethree or four rate cuts to kick
in and make the assumption thatproperty prices go up, you also

(01:32):
have to make the assumption thatit's not just your house that's
going to go up, but the onethat you're looking to buy and
the areas that you're looking tobuy.
You can't buy that as a lay-by,where you buy it today at that
price and even though yours goesup that one you've secured it
doesn't work that way.
So I always spend time with avendor helping them understand.

(01:56):
The real estate transaction isa bit like the Bible, the New
Testament and the Old Testamentwhat you sell for and what you
buy for, and it's the changeoverfigure that matters.
So that's where we're at.
But the other thing thatcontinues to happen in this real

(02:18):
estate market and I'm reallysorry it's so dark here the
other thing that's happening inthe real estate market is that I
have never seen, like I've seenin the last two years, the
unpredictability and patchinessof one property versus another
property, often only a minuteaway.
I mean even real estate peoplethat are out there in the field

(02:41):
every day cannot work it out.
They just get surprised thatone property goes off and
another doesn't.
And it must be terribly hardwhen you're valuing real estate
without having the buyer intelto be actually giving an owner
an honest assessment on whereit's going to go.
Anyway, ladies and gentlemen,it's dark, it's late, I think

(03:03):
you can hardly see me, and I'mreally, really keen to actually
listen to whether the WestTigers are getting smashed again
, because the game has started.
So, on that note, I'll see youand hopefully next week I'll be
able to give you a market wrapwith more light.