What is FOMO?

In real estate as in life, there are lots of reasons to use the FOMO hashtag. As the kids say these days, it’s ‘fear of missing out.’ Many would-be homebuyers are feeling the pressure (as well as the intense desire) to purchase a house. With the real estate market as crazy as it’s been lately, some are wondering if they should go ahead and buy a house now before prices get even wilder and they miss out completely. 

Does it make sense to bite the bullet now and spend more than you wanted, just so you don’t get priced out entirely? Is FOMO something to consider when it comes to buying a house? 

There surely are real estate experts who could write entire dissertations on this answer. But in the interest of time, here’s the short answer:

Yes, but. 

The answer is never straightforward or clear cut. With rents rising, if you’ve saved your down payment and are ready to buy a home, just remember that real estate markets are cyclical. What goes around comes around. What goes up must come down. (And all that jazz. Okay. I’ll stop now.) 

If you insist on buying RIGHT NOW, buy a home you can live in comfortably for the next, say, 5 years. Maybe by then prices will be more reasonable and you can jump to the house you see yourself in forever. Not only does this get you OUT OF the rental market, but this compromise also gets you INTO the housing market. And it’s always easier to stay in once you’ve gotten in. 

So there you have it. The short answer to whether you should let fear of missing out drive your decision to buy a home is…: Yes, but understand it might not be forever and that’s ok.