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FOMO Turns to FOOP in New Zealand's Cooling Housing Market

  • Credit squeeze and rising borrowing costs put brake on demand
  • House prices expected to fall by as much as 10% this year
Houses in the Lyall Bay suburb of Wellington, New Zealand.

Houses in the Lyall Bay suburb of Wellington, New Zealand.

Photographer: Mark Coote/Bloomberg
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There’s a new buzzword in New Zealand’s housing market -- FOOP, the fear of overpaying.

After a year of frenzied price increases when the fear of missing out, or FOMO, prevailed, a credit squeeze and rising interest rates are now driving the market in the opposite direction. Some economists predict prices will sink as much as 10% this year.