People buy with emotion, then justify with logic.
However the housing market this past year, driven almost entirely by emotion, has defied logic.
Making a decision when in an emotional state rarely yields positive results.
This will likely be true for the cohort of people who recently FOMO bought real estate at all-time highs.
It didn’t take long for buyer sentiment to shift as home prices in some markets shot up 10 – 20% year-over-year.
As a result homebuyers have started tapping out of the hunt as the FOMO wears off and logic returns.
At the same time the eviction and foreclosure moratoriums have ended.
This was the main culprit behind a glut in the housing inventory which led to frantic buyers.
You shouldn’t expect pragmatism from a realtor either.
As the saying goes, “never ask a barber if you need a haircut.”
In fact, it’s unlikely you will get sound advice from anyone who is positioned to benefit from a mania.
The herd mentality doesn’t work like that.
It selectively filters out any information that doesn’t reinforce their bias.
However, now that the moratorium is over and the economy seems to be coming down from its stimulus sugar high, is the herd about to get slaughtered?