Real estate guru Tom Panos reveals how the real estate market is ‘crassing’
A real estate expert has claimed that the length of time homes have been on the market has “blown off” as offers languish and buyers bid their time.
Tom Panos said the market was overwhelmed and urged suppliers to slash their prices amid the flood.
An SQM report revealed that the number of properties that have been on the market for more than 180 days has skyrocketed from the same time last year.
Real estate guru Tom Panos took to social media on Thursday (pictured) and dished out a brutal reality check for sellers to slash their prices
Figures showed these stale listings have skyrocketed in Hobart, with the city seeing a whopping 214 percent increase since December 2021.
Sydney topped a mammoth tally of 47 per cent and Melbourne was up 27 per cent in stale entries, while national figures rose 14.3 per cent.
Mr Panos told Daily Mail Australia providers want to get the same price they would have received last April, before the country’s eight straight rate hikes.
But he added that they need to remember that buyers’ borrowing capacity has decreased.
“Sellers hope to get the price when credit capacity is 25 percent higher,” he said.
The real estate expert offered three pieces of advice for sellers to navigate the current market where buyers are hesitant.
He said if a seller just wants to cash in on as much as possible and isn’t interested in buying again, they should take it off the market, hold on to it, and wade it out.
“Alternatively, if you’re the kind of person who wants to sell their home and buy it again in the same market — just do it,” he said.
Mr. Panos offered three pieces of advice for sellers to navigate the current market where buyers are hesitant
“Because you can buy and sell in the same market – if you wait for the market to recover over the next few years, you might get your price – but the one you’re going to buy will also go up.”
Then he had words for the seller, who is just waiting for the right buyer – the longer a property stays on the market, the cheaper it gets.
“It’s starting to get stigmatized and people are starting to say, ‘why has it been on the market for a year, there’s something wrong with it,'” Mr Panos said.
He compared buying a home to grocery shopping, where a product that stays on the shelf and doesn’t sell is discounted to get rid of it.
‘[Buyers will] Say there’s something wrong, why is it sitting there – like Woolworths and Coles, have you seen things that are past their sell by date?’ he said.
Mr Panos added that real estate agents have overpriced properties to snag and planted an expensive number in the seller’s head
“They get cut for sale, they don’t stay in the market at Woolworths and get more expensive, they get absolutely cheaper.”
Adding that estate agents have overpriced properties to snag, the TV star planted an expensive number in the seller’s mind.
‘And then the seller thinks, ‘I want that price, it was worth it at the time’, it may have been, it most likely wasn’t, [it was] overpriced,” Mr Panos said in a TikTok video this week.
“The days at the market just completely fizzled out.”
Mr Panos (pictured) said estate agents had overpriced properties to snag and planted that expensive number in the seller’s head
But Mr Panos said it was a good opportunity for estate agents to secure properties as contracts between homeowners and other agents expire.
“That means if you’re a great real estate agent, you have a great source of potential offers, that is, ‘expiration,'” he said.
He added that homeowners need a perspective check because while most house prices are down 10-15 per cent, they are likely still worth 40 per cent more than when Covid began three years ago.
“You’re still miles ahead, you’re not actually losing any money, you’re just getting back some of the gains that obviously weren’t sustainable because things were going up too fast,” he said.
Meanwhile, other cities that bore the brunt of the stale listings included Perth, up 13.7 percent, Brisbane, up 12.6 percent, and Darwin, up 12.9 percent.
Adelaide was one of the major cities with lower numbers compared to December 2021 with a 7.7 drop, while Canberra’s day was little in the market with a 0.3 drop.
“Stale Listings” – Homes that have been on the market for more than 180 days
December 2022 December 2021 change
Sydney 5,614 3,818 47 percent
Melbourne 8,026 6,322 27 percent
Brisbane 2,788 2,476 12.6 per cent
Perth 4,362 3,838 13.7 per cent
Adelaide 1,350 1,463 −7.7 per cent
Canberra 394 395 −0.3 percent
Darwin 692 613 12.9 percent
Hobart 594 189 214.3 percent
National 58,899 51,510 14.3 percent
Source: Domain, Sydney Morning Herald
https://www.dailymail.co.uk/news/article-11604407/Real-estate-guru-Tom-Panos-reveals-property-market-crashing.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Real estate guru Tom Panos reveals how the real estate market is ‘crassing’