{"id":40050,"date":"2022-08-24T09:08:25","date_gmt":"2022-08-23T21:08:25","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=40050"},"modified":"2022-08-24T09:08:25","modified_gmt":"2022-08-23T21:08:25","slug":"real-estate-boss-talking-it-up-australia-has-endured-the-worst-of-the-housing-downturn","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/real-estate-boss-talking-it-up-australia-has-endured-the-worst-of-the-housing-downturn\/","title":{"rendered":"Real estate boss talking it up: Australia has ‘endured the worst’ of the housing downturn"},"content":{"rendered":"

PHOTO: John McGrath, CEO of the McGrath real estate network. FILE<\/strong><\/p>\n

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A real estate leader says the property market has already \u201cendured the worst\u201d of the current downturn.<\/p>\n

John McGrath, CEO of the McGrath real estate network, said that the history of other housing downturns indicates that the current slowdown has already hit bottom.<\/p>\n

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WHAT? Westpac forecasts a massive $237,000 plunge in house prices by the end of 2023<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cI\u2019ve experienced most of these myself, but I\u2019ve looked historically at the last nine sales corrections and most of them last less than 18 months in longevity,\u201d McGrath told The Australian. \u201cWe think we\u2019re certainly nine months into [this downturn], thereabouts at least. The other [metric] is severity of price correction, and interestingly enough, most of the corrections have been 10% or less in Australia. I think the CoreLogics are playing catch-up at the moment. We believe that, realistically, in the metropolitan markets of Australia \u2013 most of them, anyway \u2013 we\u2019re at least 10%, more like 15% down from the peak. Occasionally, headlines pop out of your iPhone that say 15% more. That\u2019s not going to happen, I think we\u2019ve seen that.\u201d<\/p>\n<\/div>\n<\/div>\n

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McGrath also praised the New South Wales government\u2019s proposed changes to stamp duty. Under the proposal, first-home buyers would be able to choose an alternate land tax.<\/p>\n

McGrath said the proposal will \u201clessen the burden\u201d on buyers and stimulate more home purchases.<\/p>\n

\u201cStamp duty is the greatest impediment of transactions at the moment,\u201d he told The Australian. \u201cIf that lessens the burden \u2026 I think that is not only a good thing to assist us but all homeowners in NSW.\u201d<\/p>\n

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REA Group launches new consumer property marketplace | property.com.au<\/a><\/h2>\n<\/header>\n<\/div>\n

While the number of properties sold by McGrath\u2019s company dropped 3.6% to 13,344 last financial year, the total value of the stock rose 13.9% to $19.1 billion, The Australian reported. McGrath said he was \u201claser-focused\u201d on expanding the network\u2019s 111 agencies to 250 over the next three to four years, including both company-owned and franchise offices. McGrath said the transition to a franchise model will give the company more stable and predictable income.<\/p>\n<\/div>\n<\/div>\n

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\u201cWe\u2019ve thoroughly tested the theory and we think it has been well-received and will continue to be received by our key people,\u201d he said.<\/p>\n

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WARNING: House price crash ahead | ANZ (WATCH)<\/a><\/h2>\n<\/header>\n<\/div>\n

The business\u2019s full-year results, released Monday, showed an increase in both underlying revenue, which rose 1.3% to $112.4 million, and EBITDA, which rose 7.9% to $19.1 million, The Australian reported. Net profit fell $2 million to $11.7 million due to a previously disclosed one-off and significant items of around $7 million.<\/p>\n<\/div>\n<\/div>\n

READ MORE VIA MPA MAG<\/a><\/p>\n

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