{"id":31053,"date":"2021-03-05T14:20:56","date_gmt":"2021-03-05T01:20:56","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=31053"},"modified":"2021-03-05T14:20:56","modified_gmt":"2021-03-05T01:20:56","slug":"fomo-returns-to-australian-property-market","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/fomo-returns-to-australian-property-market\/","title":{"rendered":"FOMO returns to Australian property market"},"content":{"rendered":"

PHOTO: Panicked buyers are turning up to auctions in droves.\u00a0Nine<\/cite><\/strong><\/p>\n

Prospective buyers are turning up in droves to bid at auctions and house prices are rising rapidly. But the Reserve Bank<\/a> and the Morrison government are not worried \u2013 yet.<\/p>\n

The auction is \u201con site\u201d with onlookers spilling onto the road between parked cars. The build-up has been nerve-racking with all the home inspections horribly overcrowded with potential rivals. The bidding, when it finally comes, is terrifyingly quick.<\/p>\n

It\u2019s obvious by now any \u201cguidance\u201d from real estate agents tends to be at least a few\u00a0hundred thousand dollars below the actual price.\u00a0Solicitous sounding agents can hardly stop grinning as they count the commissions<\/p>\n

For this particular auction of a two-bedroom apartment, my son and his fianc\u00e9e are trying to take their first step on the Sydney property ladder but are up against at least 15 others.<\/p>\n

So son Tom has taken some advice \u2013 naturally not from his mother \u2013 on the best\u00a0auction strategy in a booming market. It is to go in strong and early to try to avoid momentum building, and to match any others quickly until his agreed limit. Take a deep breath.<\/p>\n

To our mutual astonishment it works this time \u2013 another small addition to a very strong auction clearance rate of close to 90 per cent in Sydney. Champagne and surprised relief all round. The catch is that \u201cwinning\u201d requires taking out a gargantuan loan that would have seemed beyond financial comprehension even a year ago \u2013 let alone for a young couple on average wages.<\/p>\n

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