FOMO Drives FHBs To Act

The ‘fear of missing out’ is driving the first-home
buyer’s property market, according to ME Bank
Quarterly Property Sentiment Report.

Around 51% of first-home buyers say they intend to
buy in 2020. This compares to only 39% of investors
who plan to buy this year.

“The recent property price recovery has likely
nudged first-home buyers to get in while they can
– as though it’s ‘now or never’ – and has created
a sense of FOMO,” ME’s general manager Andrew
Bartolo said.

“Low-interest rates and commentary in the market
for the support of first-home buyers may have
also contributed to an increase in home-buying
intentions.”

Investors were less optimistic, but Steve Jovcevski,
a property expert at finance comparison site Mozo,
expects investor activity to rise in 2020.

“APRA dropped the serviceability ratio just a few
months ago, so it does take time to flow through
the market and for investors’ confidence to return,”
he says.