A veteran auctioneer has sounded the alarm over Australia’s housing market after enduring what he described as the worst auction day of his 30-year career, with no buyers showing up to bid across six scheduled sales.
Tom Panos said not a single prospective purchaser registered for any of the properties he took to auction on Saturday, even though he argued the homes were being offered at heavily discounted prices.
The long-time auctioneer warned the market was moving into “very scary territory”, saying property values could slide further as stretched affordability, higher interest rates and a surge in listings put more pressure on sellers.
Mr Panos said buyer demand for real estate had effectively disappeared.
“Australia’s entering into new territory and very scary territory,” he said.
“Things are going to get worse before they get better.
“I’ve been doing auctions for 30 years. Today was the worst auction day of my real estate auction career.
“I didn’t have a single person register to bid. Not one registration.”
Auctioneer Tom Panos (pictured) failed to attract a single registered bidder across six auctions on Saturday, describing it as the worst day of his 30-year career
The national weekend auction market reported an average clearance rate of 47.9 per cent over the past week, well below the 71.9 per cent reported over the same week last year.
Fresh data suggests Mr Panos’s fears may not be isolated.
Domain’s House Price Report showed on Thursday that Sydney was leading the property market downturn.
The NSW capital saw house prices plunge 3.3 per cent to $1.73million in just three months, while Melbourne recorded its steepest quarterly decline in nearly four years, falling 3.1 per cent to $1.04million.
Across the combined capitals, house prices fell 1.4 per cent over the June quarter, wiping almost $17,500 from the median value as high interest rates, affordability pressures and buyer uncertainty continued to cool the market.
Canberra also posted a 2.5 per cent decline, while Brisbane and Perth managed modest gains despite signs of slowing momentum.
Adelaide was the standout performer, with prices rising 4.8 per cent over the quarter, making it the only capital city where annual house price growth accelerated.
Mr Panos urged the Reserve Bank board not to raise interest rates when it meets next on August 11 arguing a flood of new spring listings and further interest rate rises could put even more downward pressure on prices in the months ahead.
Domain’s House Price Report showed on Thursday that Sydney was leading the property market downturn
‘God help us on August 11, we definitely do not need a rate rise in the real estate market,’ he said.
‘But I’m beginning to think that I agree with 40 per cent of the current economists that have factored in a rate rise in August.
‘And even if it doesn’t happen, it’s going to be happening most likely in September.’
Mr Panos issued a blunt warning for homeowners thinking of listing their property: if you don’t need to sell, stay put with prices already falling 20 per cent in some marketplaces.
‘You’re not going to get the number that you want,’ he said, urging sellers with no financial pressure to hold off for a couple of years rather than test a weakening market.
But for those feeling the squeeze, Mr Panos said the opposite applies.
He likened the property market to a penthouse lift heading steadily downwards, warning owners to decide whether they want to get out on the 70th floor or the 50th before prices fall further.
‘If you feel like you’re going to have financial pressure in the near future, I would sell,’ he said, warning there was a real chance conditions could get worse before they improve.
Domain’s chief of research and economics Dr Nicola Powell said affordability had become the dominant force shaping the market, shifting the balance of power away from sellers.
‘Buyers have more choice, less urgency and greater negotiating power than they’ve had in several years,’ she said.
