These were the words McGrath Ltd's chairman, Cass O'Connor, used to explain why things had gone so horribly wrong for the real estate group since it publicly listed in December last year.

She told investors at the McGrath shareholder meeting on Wednesday that rocketing real estate prices have created "an environment in which vendors are reticent to sell, fearing they will not get back into the market."

This is bad news for real estate operators like McGrath which is heavily reliant on property sales turnover for it's earnings.

She cited data showing that listing volumes as a percentage of total property stock are currently at levels not seen since the industry started collecting this data.

A decade ago, homeowners in Australia's capital cities would move every 6.7 years - today that is 10.7 years, said Ms O'Connor. For apartments it was every 5.9 years, which has now stretched out to 9 years. 

Turbulent year

"This city is in the midst of what economists might call 'severe disequilibrium': endlessly growing demand meeting newly limited supply," she said.

It's been a turbulent first year for the group, which John McGrath, often dubbed "Mr Sydney real estate", founded in 1988 before floating the company on the ASX on December 7, 2015.

On its first day of trading, the share price fell to $1.83. Then in April, due to falling listings and concern about a residential price bubble, the group revealed it would not meet its earnings and dividend forecast, sending the stock 30 per cent lower to 90¢ in one day.

The shares have traded at that level since and on Wednesday were at 88¢ a share.

Mr McGrath said at the time of the profit downgrade that there was a drought of listings, particularly at the company's Smollen franchises which focus on Sydney's north shore and Hills districts.

Super lots

Another impact on the real estate agency's listings in that area had been the rise in the creation of so-called "super lots" where streets of houses banded together to sell their properties in one big lot to large investors for redevelopment as one big site.

The turmoil has taken a toll on its board, with Mr McGrath stepping down in August as chief executive and assuming the role of executive director to focus on the company's brand, growth and innovation.

As part of a management shake-up, Cass O'Connor - a 15-year McGrath veteran and a former business partner with Malcolm Turnbull - became the new chairwoman to replace David Mackay. Elizabeth Crouch has been appointed an independent non-executive director.

McGrath's long-time lieutenant Geoff Lucas also left in mid-August, along with three other executives.

Last week, the group announced that former Vodafone Australia chief executive Nigel Dews and AirTree Ventures investment director Cath Rogers were joining as new board members from this week's annual general meeting, while internet entrepeneur Daniel Petre, will be leaving the board.

Among the usual resolutions on the remuneration report, there is one to approve the McGrath Equity Incentive Plan, which Mr McGrath said would attract and hold the real estate talent needed to grow the business.

More to come...