'FOMO' a driving force behind Australian property market: CBA

More than half (58%) of recent home buyers appear to have suffered from ‘FOMO’ (Fear of missing out) when purchasing their properties, according to a survey commissioned by CBA.

The survey, which looked at influencing factors behind more than 1,000 Australians’ decision to buy a home, shows low interest rates and strong auction clearance levels are making many buyers feel rushed.

“Right now, it seems like you can’t catch the news or go to a dinner party without hearing about the current property market,” says a CBA spokesperson.

The survey indicated the majority of home buyers had rushed in and negotiated a price on a property before they having done their due diligence.

“Whether it’s family pressures, emotions, or a good financial deal, our research also highlighted some of the key reasons Aussies are rushing in and buying property before they are ready.”

Key factors included:

• 65% believe property prices are being steered by a fear of ‘missing out’.
• 89% of subsequent home buyers cite additional family pressures (a new baby, pregnancy, kids starting school etc.) as the reason driving them to buy quickly.
• Many investors also admitted to negotiating a price before doing their due diligence (55%) – though with differing motivations to subsequent home buyers. The research revealed they are driven to buy more quickly because they believe they have found a good financial deal and don’t want to miss out (30%).