1. Not enough AAA homes
2. Nobody moves
Reality Bites (1)
2 Power Avenue. Spent months on the market, spent tens of thousands. Not a nibble.
- Bad marketing?
- They’re asking how much?
- Really? That much?
Reality Bites (2)
32 Cloverdale Avenue. May 2015: Sold, $4.35m. November 2018: Sold, $4.25m.
- Sub $5m market is soft?
- The bank is anxious?
Reality Bites (3-9)
One agent
- Six big-money campaigns
- None sold
- Santa looms
- Grant? Are you still there, Grant?
Unreality Bites
Price is set, buyer meets it, vendor walks away.
- The vendor just wanted to know?
- The vendor decided that the buyer wasn’t good enough?
- **It happens.
Contra-indication
High-profile agent sees opportunity, trades up big time. “The market’s not falling off a cliff, it’s the lack of choice.”
Office politics?
- Vendor rings us: “I’ll sell for $14m.”
- Two days pass.
- Agent 1 rings us. Same home. “Great off-market opportunity. $12m.”
- 10 minutes pass.
- Agent 2 rings us. Same home. Same agency. “$10m+”
Pinocchio, your new nose is ready.
Watch South Yarra
Locals are.
2018. More lines.
3. Expressions of Interest were everywhere, people who understood the traps weren’t
4. People included many agents
5. Melbourne was no longer the auction capital
6. Auction of AAA homes was a fool’s tactic
7. If it didn’t sell within 48 hours of auction, it could hang in the breeze for months
8. True AAA buyers (quietly) lined up
2018 Insight:
- Ad dollars don’t sell houses.
- Agents don’t sell houses.
- Vendors don’t sell houses.
- Buyers sell houses.
2019? Is that you?
2018 is headed for the dustbin. A few desperate pre-Christmas deals to come and then it will be all over.
So what’s in store?
Negative Gearing. Kaput?
- Goodbye investment properties
- Hello, share market
Franking Credits. No more?
- Goodbye share market.
- Hello, homeless cash
Homeless cash rules?
- Hello Principal Place of Residence (and tax-free capital gain)
- Hello AAA homes are so hard to find
Hello AAA homes price bump?
- Solid demand, spotty supply
- Hello Adam Smith
Hello DIY Real Estate?
- “The agent who delivers my price is my agent.”
- Goodbye ad spend, goodbye added costs
- Goodbye agent control, hello vendor liberation