Chapter 1: What is the main topic discussed in this episode?
It's the Real Estate Podcast, brought to you by ANZ Home Loans for financial well-beings. And welcome to another episode of the Real Estate Podcast, available on iHeartRadio every morning and also on Spotify and Apple or wherever you get your podcasts from. And don't forget about those notifications because we are releasing a podcast every morning. Well, it's a Wednesday.
It is the seventh day of September for 2022, the day after the RBA decided to raise the cash rate by a further 50 basis points to 2.35%. Raising the cash rate by 50 basis points now moves us into the cash rate neutral zone, which is what the governor wanted. Well, he wanted it at 2.5%. We've gone past that now.
And it's possible that the RBA board, they might be, if they're feeling generous today, just might decide to slow the pace of increases to 25 basis points from next month in October. And some of the commentators are saying this is now the second stage of the tightening process and expecting consecutive 25 basis point increases.
is expected to extend from now through until the end of February next year with the rate peaking at 3.35%. No doubt you're doing your calculations with that 50 basis points yesterday. Coming up in just a moment, we are in Melbourne and talking with Fabian Sinelli. We're talking all things auctions and property. It's your real estate podcast for breakfast.
Our trip to Queensland, it is continuing tomorrow because unfortunately we got a bit of a flat tyre yesterday called the RBA flat tyre with the rate rise. We haven't quite reached Rockhampton, but we will be there tomorrow, promise, and then we continue on to Mackay. And if you're celebrating your birthday today for the 7th of September, have a fantastic Wednesday.
Chrissy Hind from The Pretenders, she's turning 70. Toni Braxton is turning 55, the American singer. And it was also on this day the war in Afghanistan starts, and that happened on this day in 2001. It's your weekday real estate breakfast with news, interviews and predictions every morning on The Real Estate Podcast. It's the main centre forecast with PRD, selling smarter every day.
All right, let's go around Australia and check on your weather for this Wednesday morning. And in Sydney, you better grab the raincoats.
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Chapter 2: What recent changes have occurred in the Melbourne auction market?
Possible showers today, a high of 19 degrees. Look at that for Melbourne. Good morning to you. Mostly sunny and fine. Temperature is good too with 20 degrees. In Brisbane, partly cloudy but it should be dry with 22 degrees. And in Perth today, expecting a possible shower or two and your high today of 19 degrees.
We talk with leading property commentators with analysis, predictions, forecasts and what's trending every morning from 6.30. Let's talk Melbourne property and auctions, a podcast series with Fabian Cinelli. All right. Well, it's that time of the morning to look at the Melbourne property market and in particular what is happening with the auctions there.
and to help demystify and help clear us through any foggy patches that we might have on trying to keep up with every single market around the country. We have got Fabian Sinelli. He is the Managing Director and the Auctioneer from EYS. And a very good morning to you, Fabian. Have you been kept busy? I've been very busy, Craig, and a very good morning to you.
I don't think you could have nailed that intro into the transitioning market better. That was brilliant. Well, it's been a busy time, and I know that Melbourne is no different. So looking at the Melbourne auctions, you've got an update with some numbers and some stats over the last three weeks. Absolutely. So we've had, I think personally, a really encouraging start to spring.
We had a very healthy clearance rate of 64.3% over the weekend that just passed.
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Chapter 3: How has the cash rate increase affected property auctions?
That's up from last weekend and the previous weekend before that. Melbourne's median house price jumped up a whopping $100,000 from last weekend. So I think we're sitting at $1,077,000. which is actually fantastic. Those sort of numbers there are going back to late last year when the market was going really, really strongly.
So this is a great indicator that when the median house price in Melbourne and other states as well, for that matter, start jumping up, you know that there's a lot more buyer confidence out there in the marketplace. So that spells more competition. I did find interesting, though, that there were 50 less auctions scheduled from last week.
But I'm expecting that to change given that we've only just tipped over to spring. And I think from what I'm seeing on our end with our business, that the bookings are starting to come in thick and fast, that the remainder of September is going to be a pretty healthy month. Now you talk about the spring and last time we were talking about getting closer to spring.
Now that it has arrived, what can we expect from the Melbourne property market for the 2022 spring season? Well, I think we can expect the common spring denominators and that's more properties for sale and more buyers out in the marketplace.
Agents just need to treat this market much more carefully than before though because although they will probably enjoy the spring selling season for obvious reasons, they need to understand that buyers are now smarter. Buyers have gone through the last 12 months of so many waves of the marketplace and so many different transitions. So we need to treat them with respect because keeping them engaged
is going to be more difficult given they've got more choice now with more homes hitting the market. And as an agent, you may potentially lose your buyers in this marketplace to competing auctions. So avoiding that will be a challenge, but it is easily manageable. And there's a bit of talk around property pricing and getting that right at the moment.
The question that I've got for you this morning, Fabian, is that still affecting buyer engagement? Well, in short, Craig, yes, it is. I think it will still take time for buyers to feel more buying pressure. But this is the market now being spring where that should start to change. So quoting the property still needs to be attractive for your buyers to feel engaged.
I've received calls where agents are ringing me wanting to schedule their auctions earlier in the day.
because a competitor has listed a comparable home cheaper to pick off more buyers it's going to happen so get it right from day one and explain to your vendors this could happen to them which is why they need to be on board with the right pricing strategy and also that comes down to their expectations too that craig as well another rate rise is imminent as we discussed so
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