‘FOMO’ affect good for struggling buyers
Young buyers wanting to get into the Auckland market may be about to get their chance, BNZ’s chief economist says.
Tony Alexander said prices were likely to stay flat over the near term as buyers pulled back from chasing ‘‘anything and everything’’ and their fear of missing out (FOMO) subsided.
He said young people should look for price declines in lower socioeconomic areas that had been heavily targeted by investors.
‘‘The large subdividable sections they have purchased cannot be subdivided and built on in the next few years despite the Unitary Plan changes because either no builders are available or more likely no developer can get finance.
‘‘There is no shortage of subdividable sections any longer,’’ he said.
‘‘Some of these investors will get more and more nervous and will right now be looking to get rid of their purchase. It is in such areas which young first-home buyers might want to start looking – but without being in a hurry.
‘‘Once the first few reports emerge of prices easing in these specific locations FOMO will kick in with owners looking to sell before prices decline even further. That is where I would be looking were I a struggling buyer.’’
He said buyers should ignore reports of a property price collapse. Many were fearmongering, he said.