Real Estate Agent Calls Australian Homeowners 'Greedy' Amid Falling Prices

Some Australian homeowners are exhibiting unrealistic price expectations as the nation's property market cools, according to real estate agent Amir Jahan. Jahan, director at A-Class Estate Agents, has directly addressed sellers he described as "greedy," urging them to acknowledge the current market shift.

The national average home price fell 0.4% in June, marking the third consecutive monthly decline, with capital city prices dropping 0.6%, according to Cotality data. Prices in Sydney and Melbourne have decreased by 3.7% from their peak, while cities like Brisbane, Adelaide, and Perth are experiencing significantly slower growth.

"A lot of sellers have become greedy," Jahan told the Daily Mail. "They watched homes worth $600,000 or $700,000 suddenly sell for $1.4million or $1.5million, and now they think their own property should fetch even more."

AMP chief economist Shane Oliver noted that sellers are not rushing to list their properties, with new listings remaining below year-ago levels. He forecasts property prices to continue falling, predicting national average prices to decrease by approximately 2% this calendar year, followed by a further 6% decline in 2026 and 2027. Sydney prices are expected to fall by as much as 11%.

Oliver attributed the weakening market to interest rate hikes, tax increases on investors, affordability issues, and declining buyer confidence. He suggested that the long-term trend of rising mortgage rates, poor affordability, the removal of property tax concessions, and potential shifts in immigration policy could signal the end of a prolonged housing price upswing.

However, Oliver dismissed predictions of a national price crash exceeding 20%, stating that such a scenario would likely require widespread forced selling, which is unlikely without a significant rise in unemployment.

Recent federal budget changes are also impacting the market. The government plans to replace the existing 50% capital gains tax discount with a 30% flat tax and an inflation discount. Negative gearing rules will be tightened, with concessions limited to newly built properties.

Tim Lawless, research director at Cotality, highlighted that these tax measures, combined with existing affordability challenges, cost-of-living pressures, and pessimistic sentiment, are contributing to weaker housing conditions. He pointed to auction clearance rates remaining below 50% since late May, indicating a mismatch between buyer and seller expectations. "Buyers now have more stock to choose from and less urgency in their decision making," Lawless said.