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The coach, auctioneer, and trainer has said that the incredible boom-time market of the past two years has now come to an end – and agents need to be truthful about it.
Speaking on the latest episode of Real Estate Exposed, Tom Panos was speaking with REB executive editor Phil Tarrant when he exclaimed: “It’s over for the key markets of Australia that everyone seems to be obsessed with the most, which [are] Sydney and Melbourne.
“That’s official. I’m saying it. The data is saying it.”
He highlighted the experience of Ray White Quakers Hill’s Josh Tesolin, who is reportedly already seeing what were $1.4 million properties selling for around $200,000 lower than they had been previously.
“If you look at real estate across Australia, we’ve had an incredible run,” he reflected.
“Between 2018 and 2022, we’re talking about people having their properties that have more or less come close to doubling, depending on the suburb that you’ve been in. That is a boom.
“Particularly the 2020-2021 period, the price growth that we’ve had has been incredible. But it had to come to an end, and it has come to an end.”
Drawing on his own experience, Mr Panos, an auctioneer himself, also pointed out that agents are now attempting to sell their properties 24 to 48 hours ahead of auction as they don’t have enough interest, while other auctions are getting cancelled, and others are being passed in – without even enough interest to transact by the day’s end.
According to the Real Estate Gym founder, it’s important for vendors to realise that conditions are no longer at that peak – a situation not being helped by the fact that “every weekend, there’s a story in the paper about a property that sold for $350,000 over reserve”.
“But there’s another 2,000 properties that went to auction that didn’t sell over reserve. They might not have sold at all,” Mr Panos conceded, reiterating the idea that “the market has definitely changed”.
Flagging that buyers “no longer have fear of missing out”, he acknowledged that they instead have developed a fear of overpaying.
“The fear of overpaying is highly impacted by a few headwinds that are coming,” Mr Panos shared, listing off the Ukraine War, the potential for rate rises, and the upcoming federal election as all impacting consumer sentiment at play.
With all these factors at play, Mr Panos said that one of the biggest problems facing agents at the moment is getting vendors to accept the realities of the current market.
“You might as well tell people what the truth is out there, right?”
With too many vendors still looking at the headlines, Mr Panos emphasised: “The narrative has got to be the truth.
“The truth will always set you free; transparency to the buyer, transparency to the seller.
“Quite frankly, to every real estate agent that’s worried about media talking the market down – which I really think is just telling the truth – think about it: nearly every person that buys or sell a house, not every, but nearly every person only does it for a lifestyle reason.”
Admonishing that they’re not buying a house like they are buying shares or bitcoin, the coach imparted: “They’re buying real estate because they want to have a holiday weekender, or they want to get divorced, or they want to move into the school area, or they’re relocating for work.”
All in all, whether the market is booming or it has busted, Mr Panos said it should make no difference to real estate agents.
“If you are good, [you] will be doing quite well. Because whether the market is hot or the market’s not, people are transacting,” he concluded.
You can listen to the full conversation between Tom Panos and Phil Tarrant here.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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