Real estate guru Tom Panos reveals how the property market is ‘crashing’

A real estate expert has claimed that the duration of homes on the market has ‘exploded’ as listings languish and buyers bide their time.

Tom Panos said the market was becoming overwhelmed and required suppliers to lower their prices amid the glut.

An SQM report revealed that the number of properties that have languished on the market for more than 180 days has skyrocketed since the same time last year.

Figures showed that these outdated listings skyrocketed in Hobart with the city posting a whopping 214 per cent increase since December 2021.

Sydney topped a mammoth 47 per cent figure and Melbourne rose 27 per cent on the outdated lists, while national figures rose 14.3 per cent.

Panos told Daily Mail Australia that sellers want to get the same price they would have gotten last April before the country’s eight consecutive rate hikes.

But he added that they should remember that the borrowing capacity of buyers has been reduced.

“Sellers expect to get the price when the borrowing capacity is 25 percent higher,” he said.

The real estate stalwart gave three pieces of advice for sellers to see their way in today’s market, where buyers are lingering.

He said that if a seller just wants to collect as much as they can and isn’t willing to buy again, they should take it off the market, keep it, and wade through it.

“Alternatively, if you’re the type of person who wants to sell your home and buy back in the same market, just go for it,” he said.

“Because you can buy and sell in the same market, if you wait for the market to recover in the next few years, you can get your price, but the one you are going to buy is also going to go up.”

Then he had words for the seller who is just waiting for the right buyer to arrive: the longer a property stays on the market, the cheaper it becomes.

“It starts to get stigmatized and people start saying, ‘Why has it been on the market for a year? There must be something wrong with it,'” Panos said.

He compared buying a house to buying groceries, where an item that sits on the shelf and doesn’t sell is discounted to get rid of it.

‘[Buyers will] Let’s just say there’s something wrong with it, why is it sitting there, like Woolworths and Coles, has it seen stuff that’s past its expiration date? he said.

“They’re clipped to sell, they don’t stay on the market at Woolworths and they get more expensive, they absolutely get cheaper.”

The TV star added that real estate agents have overpriced properties to get their hands on, planting an expensive figure on the seller’s head.

“And then the seller thinks, ‘I want to get that price, that’s what it was worth back then,’ may have been, probably wasn’t, [it was] too expensive,’ Panos said in a TikTok video this week.

‘The days on the market have just run out completely.’

But Panos said it was a good opportunity for realtors to snap up properties as contracts between owners and other agents expire.

“What this means is if you’re a big real estate agent, you have a big pool of potential listings, it’s called expires,” he said.

He added that landlords need an outlook review, as while most property prices are down 10 to 15 percent, they’re probably still worth 40 percent more than when Covid started three years ago.

“You’re still way ahead, you’re not really losing money, you’re just picking up some of the gains that were obviously unsustainable because things went up too fast,” he said.

Meanwhile, other cities bearing the brunt of the outdated lists included Perth, up 13.7 percent, Brisbane up 12.6 percent and Darwin up 12.9 percent.

Adelaide was one of the top cities with lower figures compared to December 2021, down 7.7, while Canberra’s market day figures barely budged with a 0.3 drop.