Housing experts reminded that first home buyers will need to be more planned and restrained this year to withstand the pressure of “phobia of missing out” (FOMO) and make wise buying decisions to avoid paying excessive prices. As of the end of 2020, housing prices in most parts of Australia are rising, and this year’s increase is expected to be even greater.
CoreLogic data shows that in the past three months, national house prices have risen by an average of nearly 2%, and the average increase in some areas has even been even higher, reaching 4%. The rise in house prices is caused by a series of factors, including panic buying, mainly because buyers are scrambling to take action before house prices rise further.
CoreLogic head of research Tim Lawless said that low interest rates and the shortage of existing housing are creating additional “a sense of urgency.” Buyers are facing greater pressure and need to act quickly. Experts added that it is better not to compete with real estate agents for first home buyers. “One of the mistakes they often make is that they think they can outsmart the agent, and the agent is usually very experienced in negotiation and has been doing it for many years.”
