PHOTO: Real Estate Agents Under Pressure As Listings Surge And Property Market Slows. Tom Panos. FILE
“They’re Leaving”: Some Agents Facing Redundancies As Housing Market Correction Looms
Australia’s once-booming real estate industry is beginning to feel the pain of a slowing housing market, with reports emerging of agents leaving the industry, staff redundancies and growing competition for listings.
After years of rising house prices, low interest rates and easy sales, many agents are now facing a very different reality.
Properties are taking longer to sell.
Listings are piling up.
Auction clearance rates are falling.
And some industry insiders believe not every real estate agent will survive the downturn.
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📉 The Property Boom Is Over
According to market commentators, conditions have deteriorated rapidly in some of Australia’s largest property markets.
Sydney and Melbourne, traditionally the nation’s property powerhouses, have both recorded declining house prices and increasing stock levels.
Recent figures show:
Sydney
- House prices down 0.9% over the past month
- Median days on market up to 30 days
- Listings up 12% year-on-year
Melbourne
- House prices down 0.8% over the past month
- Median days on market up to 30 days
- Listings up 12% year-on-year
At a national level, housing price growth effectively stalled in May, with values recording virtually no monthly growth.
💥 Did The Federal Budget Make Things Worse?
Many agents believe confidence dropped sharply following the Federal Budget announcement.
Industry observers have suggested the market “fell off a cliff” after investors began assessing the potential impact of proposed tax changes targeting residential property investors.
Among the most controversial measures proposed are:
🏠 Restrictions on negative gearing
💰 Changes to Capital Gains Tax (CGT) concessions
📊 Reduced incentives for future property investors
Because investors account for approximately 42% of Australian housing loans, any reduction in investor activity has the potential to significantly impact sales volumes and market confidence.
📞 Agents Are Hitting The Phones
As listings become harder to secure, many homeowners report a noticeable increase in prospecting activity from agents.
One Sydney homeowner said he had received six or seven unsolicited calls from agents within a matter of weeks after hearing almost nothing for months beforehand.
The explanation is simple.
When transaction volumes fall, agents need more listings just to maintain the same level of income.
Many are turning to:
- Database marketing
- Cold calling
- Direct mail campaigns
- Door knocking
- Social media prospecting
- Referral networks
to generate new business.
👋 Some Agents Are Leaving The Industry
Veteran real estate coach and auctioneer Tom Panos says while there is no mass exodus underway, weaker agents are beginning to feel significant pressure.
The agents most at risk are those who entered the industry during the boom years and relied heavily on rapidly rising property values to generate sales.
In many cases, these agents had limited experience working through a difficult market cycle.
As transaction volumes decline, some are reportedly:
- Seeking employment outside real estate
- Exploring alternative property sectors
- Moving into project marketing
- Leaving the industry entirely
According to Panos, this cycle is nothing new.
Property markets have always rewarded experienced agents during difficult periods while exposing weaknesses among those who entered during boom conditions.
🏠 More Listings, Fewer Buyers
One of the biggest challenges facing agents today is growing supply.
When markets are strong:
✅ Buyers compete for limited stock
✅ Multiple offers become common
✅ Properties sell quickly
When markets slow:
❌ Listings accumulate
❌ Buyers become selective
❌ Negotiations become tougher
❌ Price reductions increase
The latest figures suggest Australia is firmly moving into the second category.
📊 Auction Clearance Rates Collapse
Auction markets are often viewed as a leading indicator of housing market strength.
The latest figures are concerning.
Combined capital city auction clearance rates have fallen to:
54.5%
This is the lowest level recorded since April 2020 during the early stages of the COVID pandemic.
Historically:
- Above 70% = Strong seller’s market
- 60-70% = Balanced market
- Below 60% = Buyer-friendly market
Current results clearly indicate buyers are gaining the upper hand.
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💰 Interest Rates Continue To Bite
While the Federal Budget has received much of the attention, many analysts believe rising interest rates remain the primary driver behind the market slowdown.
The Reserve Bank of Australia has already increased the cash rate several times, taking it to 4.35%.
Some major banks believe rates have peaked.
Others expect further increases.
Current forecasts include:
Commonwealth Bank
Rates expected to remain on hold.
ANZ
Rates expected to remain stable.
NAB
Forecasting another 0.25% increase.
Westpac
Forecasting two additional increases.
If those predictions prove correct, mortgage holders could face even greater financial pressure in the months ahead.
🔍 Why Experienced Agents Often Thrive In Downturns
Interestingly, difficult markets often separate great agents from average ones.
When properties sell themselves, almost anyone can appear successful.
When buyers become cautious, experienced agents become far more valuable.
Skills that matter most in a downturn include:
🏆 Vendor management
🏆 Negotiation
🏆 Pricing strategy
🏆 Marketing expertise
🏆 Database management
🏆 Prospecting discipline
Many industry veterans argue downturns are where reputations are truly built.
🇳🇿 What Does This Mean For New Zealand?
While the article focuses on Australia, many of the same themes are relevant across New Zealand.
The New Zealand market has also experienced:
- Higher interest rates
- Slower sales activity
- Increased stock levels
- Longer days on market
- Greater vendor competition
Many agents on both sides of the Tasman are discovering that prospecting, database management and relationship building have become more important than ever.
📍 Property Noise View
Every property cycle creates winners and losers.
The boom years rewarded almost everyone.
The next few years may be very different.
The agents who survive and thrive will likely be those with strong databases, disciplined prospecting systems, realistic vendor management skills and the ability to adapt quickly.
As the saying goes:
“When the tide goes out, you discover who’s been swimming naked.”
The Australian property market may be entering that phase now.
SOURCE: NEWS.COM.AU