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The Australian property market is no longer a seasonal market, it’s now a public health order market, according to Tom Panos.
Speaking on a recent episode of Real Estate Exposed, he told co-host Phil Tarrant that the real estate behaviour model has been disrupted as a result of COVID-19.
“It is not based on the weather, it’s not based on the season of the year. It’s based on what the chief health minister has as a recommendation, as a public health order,” Mr Panos said.
It was then that he conceded: “I’m afraid to say, we’re not going to see the Super Saturday that we see normally happen [in] late September.”
But the REB coach and trainer has acknowledged that when the green light does go on — when public health orders do allow — “there’ll be too much stock on there”.
“There’s going to be all these listings, and you’re going to see realestate.com, domain.com signboards everywhere. That’s going to be a buyers’ paradise,” he said.
He predicted that this will take place around November or December, based on the “vaccination sprint” currently taking place: “Our rollout, which was initially a stroll-out, has now actually gotten pretty strong.”
Based off of the idea that the nation is making progress, and alluding to the idea of a buyers’ paradise, he forecast that “when there’s a green light and the market opens up, you’re going to have a lot of listings on the market”.
But with buyers never disappearing through COVID-19, and suffering through such little stock and supply, Mr Panos has conceded a certain level of worry.
“I’m worried because there’s a lot of sellers that haven’t come on to the market since the middle of the year,” he said.
And while Mr Panos said the buyers “will be there”, he flagged the absorption rate as likely to head downwards.
He defined that absorption rate as “how many days would it take for all the stock on the market to get sucked in by the buyers?”
“So when you’ve got a lot of stock, the absorption rate actually becomes lower, because what actually happens is there’s just most stock to get absorbed,” he said.
Given that buyers “haven’t disappeared” and have lamented a lack of stock, Mr Panos voiced the concern: “I’m not sure there’s going to be an increase of buyers to match the increase of supply. That’s what I’m saying.”
You can listen to the entire episode of Real Estate Exposed here.
Or watch the episode below:
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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