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 and wherever you get your podcasts from. Already the middle of the working week. Didn't take us long to get to Wednesday, the 28th day for September of 2022.
And coming up, we are talking with Fabian Sinelli and looking at the Melbourne property market, especially the auctions being held in and around Melbourne and what has happened over the last couple of weeks with Fabian calling the auctions there in Melbourne.
Also, as a result of the mortgage rate rises and the home budgets being squeezed, this has had an adverse effect on people's borrowing capacity. It's something that we are going to have a look at tomorrow on The Real Estate Breakfast. And Domain have reported a couple earning two average incomes of around $92,000 each are borrowing $264,000 less today.
than they could have back in April of this year. And the Reserve Bank's head of domestic markets, Jonathan Kern, said buying power had been cut by about 20% while mortgage repayments had risen by 25% since interest rates rose. So we will take a look at that tomorrow morning. It's your weekday real estate breakfast with news, interviews and predictions every morning on The Real Estate Podcast.
Hey, if you're celebrating your birthday today for the 28th day of September, on the birthday calls, we've got Naomi Watts. the Australian actress. In fact, she was born in the UK, moved to Australia, and she got her acting underway on Home and Away. How many actors have? She's turning 54 today and also going pretty strong, celebrating her birthday as Brigitte Bardot.
And the millennials, if you don't know who she is, check her out. 88 today, French actor and also a singer. It's your real estate podcast for breakfast. It's the main centre forecast with PRD, selling smarter every day. Checking in on your weather around Australia. First, we go to Sydney. Good morning to you. Grab the raincoat and brolly. You're going to need it.
Some showers in the forecast with 21. In Melbourne also the rain is going to turn up today, 17 is your forecast high. More rain for Brisbane, showers with 25 degrees and the place to be is Perth this morning expecting blue skies with sunshine and your high of 27 degrees. We talk with leading property commentators with analysis, predictions, forecasts, and what's trending every morning from 6.30.
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Chapter 2: What is the current state of the Melbourne property auction market?
Well, we are into spring well and truly. October is here on Saturday, as I've mentioned before, and the mood of real estate seems to have a bit of a change in the air, or at the very least, at a perception level, things seem to be feeling more positive. And it's a great time to look at the state of the Melbourne property market and auctions.
So let's welcome back into the Real Estate Breakfast, Fabian Sinelli. He's the Managing Director and Auctioneer from EYS Auctions. And good morning, Fabian. Welcome back to the Real Estate Podcast. Good morning, Craig. Great to be here again. So what do you reckon about that? Do you feel that, you know, we're just about here in October, things are feeling just a little bit more positive, eh?
They are definitely feeling positive. September's a bit of a funny month. It's because of the footy finals and how Melbourne, Victoria especially, are just so religious about their footy. You know, given that we had to go through the footy finals and grand final, a lot of people just want that out of the way before they start to get into the rhythm and flow of the spring market.
So although the spring market officially starts in September, I believe it doesn't really kick off until the start of October. So grand finals done and dusted.
Chapter 3: How have recent mortgage rate rises affected borrowing capacity?
A Victorian team won it, which was great. Now we can really get into what I feel is going to be the heat of the battle for spring.
yeah the heat of the battle that's the way so the melbourne market update there is a lot going on what has been happening look it's definitely steadied and i know i've said this a couple of times over our last couple of shows but 64.5 was recorded last weekend now that's grand final weekend but what's important about that is that it was the same as the previous weekend so that shows me that the market isn't declining and it's still going through that stabilization
especially after that latest interest rate hike that we saw. So usually when we go through a period of stabilization, and I think we've experienced that now for at least two to three weeks, we now should start to see a bit of a pick me up. And I think the stabilization's come at the perfect time right before spring or right at the start of spring, I should say.
So hopefully at the back end of the year, we should really start to see the interest rates pick up. And I think we're gonna start to see stock levels start to pick up as well. What was interesting though over the weekend that just passed, Craig, was that only 97 auctions. Now, again, grand final weekend, yes, granted, but 97 auctions is really low. This time last year, we had 297 auctions.
70% drop in stock is really reflective on where the market is sitting right at the moment. And that's just discretionary sellers. I mean, sellers aren't confident to sell because they feel the buyers aren't confident to buy their home. And we're dealing with a really slow and low confident marketplace at the moment. But on a positive note, median house price in Melbourne was at $1,075,000.
So that shows me that buyers are still happy to spend, which is a great sign moving forward. Okay, so Fabian, let's have a look at the spring auction buying guide, which is probably a good place to start. So the first question is, what advice would you give to buyers wanting to buy in the spring market that we are well into? Well, first things first, don't hold back. If you want it, buy it.
If the property is a lifestyle choice, then worry about creating priceless family memories rather than staying in a budget, provided, of course, you can stretch that budget, but you won't regret the extra 10 or 20K. And also, don't try and outsmart the auctioneer. They want you to bid, and I speak for myself. I want the bidders to bid. If I see them actively bidding, I want to help them.
If the auctioneer knows that your intention is to buy, they will simply guide you on where you need to get to in order to be successful. Being a friendly bidder is going to go a long way and the auctioneer will be more inclined to work with you should you want to drop the increments, et cetera. Yeah. And this is always a good one to talk about because I think you can never be fully prepared.
Being prepared, this is such a long way down the track for you to actually buy property. So what can buyers do to be better And that's the crux of it, better prepared for auction day. The funny thing about preparation is that you can never prepare enough. And that's a lot of people ask me, you know, what do I need to do? Do I need to do my market research for weeks on ends or months?
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