FOMO in Melbourne’s Property Market: When to Stretch and When to Walk Away
In This Week’s How's The Market | Edition 129
FOMO in Melbourne’s Property Market: When to Stretch and When to Walk Away
Design Excellence with Uncompromising Luxury
Is now the right time to sell? What the latest property forecasts reveal
FOMO in Melbourne’s Property Market: When to Stretch and When to Walk Away
The Psychology of FOMO - Why Buyers Are Rushing In
Across Melbourne, conversations in cafes, workplaces, and even ride shares are all about one thing: property. Buyers who were once content to sit tight in rentals are now breaking leases just to get into the market. The mindset? “If prices are rising, I’d rather buy now than miss out later.”
FOMO (Fear of Missing Out) is powerful and it’s fueling the market. When everyone believes prices will rise, buyers pay more today, expecting tomorrow’s gains. That collective thinking is exactly what drives property prices upward.
A self fulfilling prophecy.
Auctions: Where FOMO Becomes Real
At auctions, the effect is clear and this is why agents love them. Buyers are stretching beyond quoted ranges, sometimes paying $50K - $100K over recent comparable sales. A three-bedroom home is suddenly fetching four-bedroom money, with emotion and fear pushing bids higher.
The danger? Paying six to twelve months ahead of the market. While some overpayment early in a growth cycle might “catch up” as prices rise, buyers who overstretch risk being left behind when momentum slows.
I’ve seen people pay 20% - 30% over comparable market value in some instances…
Seasonal Pressures - Why Timing Matters
Spring and Christmas are adding fuel. With only a handful of auction weekends left before the year ends, urgency is building. Shortened campaigns around public holidays, the AFL Grand Final, and Melbourne Cup mean fewer opportunities for buyers.
If you want to settle before Christmas, the clock is ticking - buyers realistically have until late October or early November to secure a property. That time pressure alone is driving emotional bidding.
What We’re Seeing on the Ground
Crowds are back: Open homes are drawing long lines, especially in the $1.5M+ range.
Five-plus bidders: Competitive auctions are the norm for quality homes.
COVID déjà vu: Just like the post-lockdown surges, buyers are piling in, fearing fewer chances ahead.
Government schemes: The 5% deposit guarantee and looming interest rate cuts are pouring fuel on demand.
Knowing When to Walk Away
While momentum is real, discipline matters. Buyers need to set clear limits. Industry experts suggest allowing a 3-5% “emotional buffer” above logical market value. This accounts for both rising prices and the reality that inaction also comes with a cost.
But beyond that, overpaying becomes dangerous. If you’re already stretched and agents encourage you to “just add another $30K,” it may be time to walk away. The right home will come, patience and persistence are key.
How to Stay Grounded in a FOMO Market
Do your homework: Base your price on sales from the past 3–6 months, not outdated data.
Get out there: Visit openings, attend auctions, and play the “price game” to sharpen your instincts.
Beware underquoting: Some properties still sell below the bottom of their ranges don’t assume everything will go over.
Actively hunt: The more properties you see, the less desperate you’ll feel about any single one.
Stay ahead of the market - get the real auction results every week!
What The Agents Are Saying
FOMO is driving Melbourne’s market buyers to break leases and stretch budgets just to get in.
Auctions are heating up with 5+ bidders on standout homes, pushing prices well past quoted ranges.
Crowds are back at opens in the $1.5M+ bracket, a clear sign competition is intensifying.
The $2m - $2.5m market is gaining some momentum with more developers looking for good sized blocks in blue chip suburbs.
Tight stock and only weeks left before Christmas are creating a pressure-cooker market.
Agents agree: urgency is high, and buyers who hesitate risk missing out.
The Wow Factor!
50 Perth Street, Prahran, Vic 3181
Design Excellence with Uncompromising Luxury
Why it WOWs:
Multi-award winning Mancini Made + Home by MM design
Soaring 3m ceilings, oak floors & dramatic curved glass
North-facing courtyard with atrium & feature wine bar
Chef’s kitchen with twin ovens, dual induction & butler’s pantry
Main suite with skylit freestanding bath & luxe terrazzo ensuite
Double garage + Daikin climate control & full smart security
Moments to Greville St, Prahran Market & Fawkner Park
Price guide :$4,965,000
In The Media
Is now the right time to sell? What the latest property forecasts reveal
Australia’s property market is showing clear signs of a seller’s comeback. Victoria’s auction clearance rates recently hit 70%, with Sydney and Brisbane also seeing strong demand. Forecasts suggest steady price growth ahead Melbourne is tipped to rise 1% in 2025 and 4% in 2026, Sydney 4% and 6%, and Brisbane 7% and 8% over the next two years.
Driving this momentum are falling interest rates, strong population growth, and limited new supply, creating competition and a renewed fear of missing out among buyers. Experts say timing is key: selling before spring could secure a settlement early, while summer listings may benefit from less crowded conditions and strategic planning.
It’s not just the cities seeing action, regional markets are also bouncing back. Victoria’s regional areas saw 22% sales growth compared to 4% in Melbourne, while regional Queensland continues to stand out. The takeaway: for homeowners across Australia, the market is moving, and knowing when to sell could make all the difference.
Final Thoughts
FOMO is real, and Melbourne’s property market is heating fast. But buyers who keep their discipline balancing logic with a small allowance for emotion can still secure great homes without being swept away by the hype.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
