Real estate agent’s viral posts reveal property market angst
An inner west Sydney property auctioneer with an impressive side hustle, Tom Panos is someone few people have ever heard of. But over the weekend, she became an overnight celebrity and viral sensation after her real estate listing hit the mark in the current real estate zeitgeist.
The weekend post reflected an equal measure of panic and desperation on the part of property sellers and wariness and apathy on the part of buyers. Both opportunistic sellers and bargain-hunting buyers stand on the sidelines.
Panos’ explanation of the results of last weekend’s auctions makes for exciting listening; none have sold and there is not even a single offer on any of the properties.
“I didn’t have a single sign-up of people to bid. You see? I didn’t have a single sign-up. Not one person said to themselves, ‘You know what? There are some bargains out there. I can go in and see what’s really going on,'” the auctioneer said in a video on social media platform X.
The colorful market reflections that Panos shares on social media sites, including X, undoubtedly help to raise his public profile.
But it is also a sign of the property market’s growing anxiety that his posts have gone viral online, while also appearing on morning television and other traditional media.
Panos said it was the worst incident he had experienced in 30 years. Due to the location of Sydney real estate on the coalface, Panos estimates that some particularly prestigious markets in Sydney have already fallen by 20 per cent, while mid-valuation markets have fallen by 10 per cent. He thinks the only category where prices are rising is the lower end, where first home buyers operate.
Last week’s initial nationwide auction approval rate doesn’t fully reflect Panos’ experience. At first glance, just over half of the affected properties were sold; However, this figure is likely to be revised downwards.
However, it has been 12 weeks, clearance rates are well below average, and the negative impact on prices is becoming more evident in each monthly pricing results. Optimists advocating a short-term or slight correction in pricing are becoming increasingly isolated.
There’s also a chorus of real estate experts predicting that new housing stock will hit the market in the spring, pushing prices even lower.
Last week the Real Estate Institute of Australia said it had found the government’s proposed changes to negative gearing were the biggest weight on house prices, even more so than interest rate increases this year.
While we should not participate in the property price apocalypse, it is fair to assume that a 0.25 percent interest rate increase in 2026 would lead to a decline in national house prices that could last into 2027.
The good news is that interest rate markets think the Federal Reserve is unlikely to raise rates next month, but the bad news is that markets are predicting at least one more rate hike before the end of the year.
We will have a clearer picture of how the RBA assesses the economic situation after the June quarterly inflation figure is released on Wednesday.
Inflation also fuels general consumer caution, as does the ups and downs of President Donald Trump’s Middle East war and its impact on oil prices.
These are not ingredients for strong economic growth or a vibrant retail sector.
Myer’s chief executive warned this week that the slump in sales in June and July (which followed a strong May) had already resulted in more promotional activity than planned. Myer had expected sales to increase by 0.3 percent for the full year through July.
ANZ-Roy Morgan’s Australian consumer confidence index fell 4.4 points last week to 71.2 points; this was the lowest level since June. All of this evidence points in the same direction.
And one must agree with Panos; Now is not the time to sell a house.
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