PHOTO: Amir Jahan. FILE
Agent Sparks Backlash After Labelling Homeowners ‘Greedy’
A leading Australian real estate agent has ignited debate after blaming “greedy” homeowners for refusing to adjust their price expectations as Australia’s housing market continues to soften.
The comments come as new Cotality data shows national dwelling values fell 0.4% in June, with capital city prices declining 0.6%—marking the third consecutive month of falling values across Australia’s major housing markets.
While buyers are becoming increasingly cautious, some agents believe many sellers are still pricing their homes based on the extraordinary gains experienced during the COVID-19 property boom.
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“They Think Their Home Is Worth More Than the Last Record Sale”
A-Class Estate Agents director Amir Jahan told the Daily Mail Australia that unrealistic vendor expectations are becoming one of the biggest obstacles in today’s market.
According to Jahan, many homeowners watched neighbouring properties double in value during the pandemic and now expect their own homes to achieve even higher prices.
“They watched homes worth $600,000 or $700,000 suddenly sell for $1.4 million or $1.5 million,” he said.
“Now they think their own property should fetch even more.”
He believes many sellers are refusing to accept that market conditions have changed.
Mr Jahan said some homeowners had become ‘too greedy’ – while he is doing it tough with no socks
Is It Really Greed—Or Just Human Nature?
Jahan’s comments have prompted debate within the property industry.
After years of being told property values would continue climbing, many homeowners understandably anchor their expectations to recent record-breaking sales in their neighbourhood.
For most Australians, their home represents their largest financial asset, making it difficult to accept lower offers when markets begin to cool.
The widening gap between buyer expectations and seller expectations is now becoming increasingly evident.
Amir Jahan (pictured) said some vendors had unrealistic price expectations after watching modest suburban homes soar hundreds of thousands of dollars in the boom years
Buyers Hold the Upper Hand
Property analysts say conditions are shifting in favour of buyers.
Auction clearance rates have remained below 50% in many areas since late May, while homes are taking longer to sell and stock levels are increasing.
With more choice available, buyers are negotiating harder and showing less urgency than they did during the boom years.
Economists Forecast Further Price Falls
AMP Chief Economist Shane Oliver believes Australia’s housing market still faces significant headwinds.
He expects national property prices to decline by around 2% this year, followed by a further 6% across 2026 and 2027.
Sydney is forecast to experience some of the largest declines, with prices potentially falling by as much as 11% from recent peaks.
According to Oliver, several factors are weighing on the market, including:
- Higher mortgage interest rates
- Reduced affordability
- Lower buyer confidence
- Proposed changes to property tax settings
- Slower population growth
Tax Changes Could Further Reduce Demand
The Albanese Government’s proposed property tax reforms are also expected to influence buyer behaviour.
Among the changes proposed are:
- Replacing the existing 50% Capital Gains Tax discount with a new taxation model.
- Restricting negative gearing concessions primarily to newly built homes.
- Grandfathering existing investment properties purchased before the proposed commencement date.
Property analysts believe these measures could reduce investor demand and place further downward pressure on housing values.
Will Australia See a Property Crash?
Despite the weaker outlook, economists are stopping well short of predicting a housing market collapse.
Oliver believes forecasts of a 20% market crash are unlikely unless unemployment rises sharply and large numbers of homeowners are forced to sell.
Historically, Australian homeowners have demonstrated a strong willingness to hold onto property during periods of market weakness.
Pricing Expectations Remain the Biggest Challenge
Cotality Research Director Tim Lawless says today’s market is increasingly characterised by a disconnect between buyers and sellers.
Many homeowners are still hoping to achieve yesterday’s prices, while buyers are adjusting their expectations to reflect current market conditions.
Until those expectations begin to align, analysts expect longer selling times, softer auction results and continued downward pressure on prices.
The Bottom Line
Whether homeowners are genuinely being “greedy” or simply reluctant to accept changing market conditions remains open to debate.
What’s clear is that Australia’s housing market has entered a very different phase from the pandemic boom.
For sellers, realistic pricing may become increasingly important.
For buyers, improving affordability and greater choice could finally create opportunities that have been absent for several years.
SOURCE: THE DAILY MAIL