Fear of missing out returns for property buyers

PHOTO: In an early August REINZ and Tony Alexander real estate survey, a net 66 percent of real estate agents report seeing fear of missing out (FOMO) among buyers. Photo credit: Supplied/GettyImages.

Fear of missing out is persisting for property buyers, the latest real estate survey showing it’s at the highest level in four months.

But fear of overpaying is lower than the peak period of April and May.

In an early August survey carried out by the Real Estate Institute of NZ (REINZ) and independent economist Tony Alexander, 66 percent of real estate agents report seeing fear of missing out (FOMO) among buyers. It’s up from 49 percent in late April/May and up from 60 percent in July.

Fear of overpaying (FOOP) peaked in April, Alexander told Newshub, with 37 percent of agents saying buyers were concerned house prices might fall – it’s now declining. In the August survey, 19 percent of agents reported this as a concern.

“FOMO has gone up, FOOP has gone down,” Alexander said.

Is FOMO in play for buyers?

**Real estate agent responses to the question on whether FOMO is at play for buyers. Photo credit: Supplied/REINZ & Tony Alexander Survey.**

Compared to February, more real estate agents feel house prices are rising, at a net 61 percent in August.

But more real estate agents reported fewer buyers attending auctions and open homes than those reporting more, a trend that has persisted for five months.

In August, a net 11 of agents reported fewer buyers at auctions – the same as the week following the Government housing announcement on March 23.