I work at the coal-face of the real estate industry. I’ve never said this before, but dark times are coming: ‘Everyone will suffer’

Real estate agent Adam Flynn has spent 25 years denying his colleagues’ fear-mongering claims that Australia’s property bubble is about to burst.

Now he believes their dark prophecy could come true.

Speaking to FEMAIL, the sector expert and real estate investor claimed that a rate hike in August or September, plus a possible further increase in November, would paralyze the market.

“It (the Australian housing market) is going to go down and everyone is going to suffer,” he claimed.

Mr Flynn works ‘on the front line’ of the industry, selling homes far from the crooks at the Reserve Bank of Australia who keep raising interest rates in an attempt to curb inflation.

“They’re not hearing the conversations in real time, based on the 13 rate hikes. People are hanging by a thread,” he said.

“Just a few days ago I spoke to a homeowner who had just enough money in her account to buy new shoes for her child.”

And it’s not just the broke and financially illiterate who are approaching breaking point, he said.

Australians, from first-time homebuyers on a budget to those with enough bank clout to secure loans for large homes worth millions, are in trouble.

Even when project developers once had a lot of money, they were still too busy.

“I’ve spoken to people across all categories. I’ve never seen it this bad. I think 30 percent of people with mortgages in Australia are at breaking point.

“They will be destroyed as interest rates rise – and many more will be on the brink of collapse.”

People will be forced to put their homes on the market to pay back the banks.

“There will be a flood of properties and the only way to make one property more attractive than another is to lower the price,” he said.

“Every spring there’s already a flood of homes on the market. This is only going to make it worse.”

According to the Melbourne-based real estate agent, the rush to stay competitive and sell quickly could lead to a dramatic drop in house prices.

“Prices could fall by 40 percent. It will take years to recover from that kind of blood loss,” he said.

“People aren’t getting enough back for their homes to pay the banks, or aren’t getting enough back for another deposit. They’re just losing everything.”

He advises anyone who can’t afford further interest rate hikes or doesn’t want to sit on their home for years to sell it now.

And then there’s the sting in the ass: the fees that real estate agents charge sellers, he explained.

Mr Flynn expects house prices across the country to fall rapidly.

And he’s bracing for record numbers of homes selling quickly over the Christmas and January holidays, when the housing market is typically quiet.

According to Mr. Flynn, people need to put their homes on the market as soon as possible to avoid bank problems, and they need to keep prices low, otherwise their homes will be outdated after a few months.

Especially if other sellers come in with a lower price and are bought up, buyers will think the more expensive house has problems.

“And people don’t have that time. They can’t (raise the price) and estimate the interest rate and then lower it again. The banks want to know if they’re serious about selling.”

Mr Flynn said the damage would not be limited to a specific location or tax bracket, but would change Australia’s housing market and wealth distribution forever.

But a total housing collapse wouldn’t be bad for everyone.

“The people who have never been able to own a home and who are struggling to make a down payment or get a loan now have an opportunity,” he said.

He said if there are two rate hikes in the coming months, people will be desperate to sell their homes, creating a buyers’ market.

If his prediction of 40 percent destruction comes true, people could buy homes now worth $1 million for $600,000, he claims.

‘I don’t think the RBA has any other way to tackle inflation than by raising rates. But it would be hugely irresponsible for them to do that.’

Australia could see a new wave of first-time homeowners and a “new money” class could rise from the ashes, he said. And of course the super-rich would still benefit.

“There are investors with money waiting for this to happen. They’ll jump in and buy good houses at a bargain price,” he said.

“The next two years will be a buyer’s market. Until inflation comes down.”

Then the reconstruction will slowly begin.

According to Flynn, the wave could start the day interest rates are raised. Most people realize they have already reached the limit.

But it could also be a two-stage process, with others rushing to sell their properties if they can no longer make the next payment.

Flynn had previously been confident in the market, claiming that there would be small bumps, but that the bubble would never burst completely.

“I never said this, and I’ve worked in this industry through the Great Financial Crisis, 9/11 and Covid,” he said.

Mr Flynn said anyone who is not financially or mentally prepared to stay in their home for the next three to five years should sell their home now, before prices fall.