Real Estate
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.
Photographer: Mark Coote/BloombergThis article is for subscribers only.
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.