Chapter 1: What insights are shared about the current real estate market?
It's the Real Estate Podcast across every state, city and town of Australia. 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 podcast from. Well, it's a Sunday, the very last day of July as the weekend continues.
I hope it's a good one for you, whether it's real estate or just relaxing, putting the feet up and just catching your breath. Yes, it is the 31st of July. Tomorrow, we know we are carving off the year. When we hit August, the back end of 2022 has begun. And spring is getting closer, which is going to be great for you listing your property if you're waiting until spring arrives.
Chapter 2: How is the weather affecting property listings this week?
Coming up, we are reviewing the last seven days with the Sunday in Review Breakfast Podcast with some of the leading interviews and thought-provoking commentary around your real estate this morning. from first home buyers to property investors and everything in between, every morning on The Real Estate Podcast.
Grab your coffee and switch on your real estate breakfast every weekday morning from 6.30. It's the main centre forecast with propertybuyer.com.au.
Chapter 3: Is it really doom and gloom for property vendors in Bondi?
And around Australia, we go to have a look at your weather. First to Sydney, it's going to be cloudy but dry. Your high of 17 degrees. Melbourne, expect the rain today and windy conditions with 15. Brisbane, it should be mainly fine. Maybe a little bit of cloud around for your Sunday, but 21 is your forecast top. And in Perth today, expect one or two showers and your high of 17 degrees.
It's your real estate weekend podcast in review. Is it all doom and gloom for vendors, especially in Bondi, Sydney right now? No, I don't think that is all doom and gloom because the reality is that people still want to live and people still need to transact and people are still buying and selling because life still proceeds. So, it's not all doom and gloom.
Chapter 4: What challenges are first home buyers facing in today's market?
There are people that will certainly pay a premium for the right property. I think it's just important to really make sure you listen to your agent and And really make sure that the property presents itself in the best light possible and that you're doing everything you can and listening to the agent and marketing in the right way.
Because more than ever, now it's really important to get the property out there through as many marketing methods as possible when it is on the market and listen to the agent and listen to their guidance and advice. And I think that in line with presenting it as best as possible is still going to give you the good opportunity to get the best prices.
You know, I had to ask you the doom and gloom because that is followed up with the possibility next year the market could bounce back, catch a little bit of a bump. And we all know that property is about confidence. It's about getting that little bit of a bump, a little bit of confidence. Suddenly a different side re-emerges from where we are right now. Absolutely.
I mean, look, I think people are a little bit shaken. And as you said, the confidence has been knocked a little bit with the last, you know, four interest rates rise very quickly. We had one, another one and then a double one.
Chapter 5: How does stamp duty impact home ownership decisions?
People were not expecting to go up 50 basis points. So I think that at the moment there is a little bit of that combined with, you know, winter, a lot of rain we've had, people can now travel. So I think that... from my perspective, that people will certainly get a bit more comfortable once they come back.
And as I said before, my feeling is that some market will traditionally come back and we'll see a bounce back early next year and follow through. It's very hard to predict where it's going to be. Nobody could have seen what happened with COVID and how prices really flared up. So my feeling is that we'll probably have a little bit of a bounce back.
And I think that people will come back and be refreshed from the breaks that they've been able to have and refocus. Enjoy your morning coffee.
Chapter 6: What strategies can agents use to set realistic reserve prices?
It's your real estate weekend podcast in review. What are you observing from first home buyers and particularly the strain of their finances right now? Yeah, that's very topical at the moment. One of the biggest challenges for first home buyers is their deposit as well as trying to maximise essentially what they're able to borrow.
So the confluence of increasing rates, there's the issue around the increased cost of living that's impacting everybody.
Chapter 7: How does the bidding process work in property auctions?
Obviously, with inflation running hot, cost of living going up, there's a lot more scrutiny happening. starting to come down the line from the providers around some of these types of things that are impacting what buyers can do. In saying that, there's a lot of buffers in there with living expenses, benchmarks and stuff, but it does start impacting the buyers.
And not only are they trying to save for a deposit, but they're getting hit with increased cost of living pressures, as well as increasing rates, which is impacting what a lot of them want to be able to do at the moment. Yeah, good point. And one of the problems a first home buyer has is not just the expenses going up, but also as a result of that, it can reduce their borrowing power.
Yeah, we're seeing that across the board. And for first home buyers, it's not insignificant. A lot of them are already looking to try and maximise what they can borrow because they might have a smaller deposit. They might be trying to access one of the government schemes around the first home loan deposit scheme or something.
Chapter 8: What emotional factors influence buyers during an auction?
So Their borrowing capacity is critical, and that is being impacted by increases in interest rates. So while the provider buffers may not have changed, the fact that the interest rates are rising, what they're assessing the borrower at is higher. So that impacts how much they can actually borrow. Then you add the cost of living pressures, living expenses going up.
That additionally impacts what someone is able to borrow. So what we're finding is the first homebuyers have those affordability constraints. and they're being squeezed a little bit from all sides. Cost of living pressures, increasing interest rates, that's impacting how much they can borrow. And then again, that's flowing through to what they can afford to buy.
It's the real estate podcast across Australia, seven days a week. It's your real estate weekend podcast in review. And Tanya, I saw that you were quoted as saying that stamp duty is disincentivizing people to right size now, which picks up on the point that you were talking to earlier and also in the future and will continue to have unintended consequences.
So just once again, just highlight some of those consequences. Yeah, well, look, I mean, stamp duty is a significant portion of the cost of purchasing a home. And that's on top of a whole range of other costs that you have in terms of agent fees and other bits and pieces. The median house price here, we are still the most affordable city in the country at the moment here in Perth.
But if you were to sort of have this challenge in New South Wales or Victoria... where in New South Wales, we're looking at over a million dollars as the median house price. I mean, it just puts housing or home ownership completely out of reach.
The challenge around transitioning away from stamp duty, making sure that the state government still, it's a revenue neutral exercise for them because it does form such a significant part of their revenue that we need to make sure that the revenue side of things isn't heavily impacted by a change. but also to give people choice.
And that's why we support an opt-in model whereby you can choose to pay the stamp duty upfront if that makes sense for you, if you're intending on being in the property for a significant period of time. So I think it's about choice. I think it's about flexibility and providing those options to people to do what we can to help them get into a home that suits their needs.
It's your real estate weekend podcast in review. And the seller, importantly, chooses the period of time that they want to run the auction. And probably just as importantly, they're able to extend the auction as well. That's correct. So there's a start date of the campaign. And unlike...
a traditional auction where the auction is conducted in four weeks on a Saturday or a Sunday, whatever the case may be, the auction commences from day one of being on the market. And then there's a closing period.
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