Despite renewed concerns about inflation and diminishing hopes for further interest-rate cuts this year, the housing market continues to push forward under the weight of buyer FOMO.

Recent auction results show strong national performance, with roughly seven in ten properties selling under the hammer. Major capitals such as Sydney and Melbourne delivered clearance rates just shy of 71 per cent, making it one of the busiest and most competitive weekends of the year. While demand remains robust, the standout issue is supply: available listings remain about 18 per cent below long-term averages, even as sales volumes sit comfortably within historical norms.

This imbalance is driving ongoing price resilience and supporting the seller’s-market conditions seen throughout much of 2024 and 2025. Agents on the ground report heightened competition among both seasoned investors and first home buyers accessing government-backed support programs. Inner- and middle-ring suburbs with relatively affordable entry points are proving especially popular, with multiple bidders often competing aggressively for well-presented homes.

The broader sentiment is shaped less by speculative ambition and more by apprehension. Many buyers fear that waiting until 2026 will leave them priced out of key markets, especially if inventory remains scarce. As a result, urgency is dictating buying behaviour, sometimes overriding strategic discipline. For investors, this emotional backdrop highlights the importance of maintaining clear valuation criteria and avoiding overpaying in heat-driven campaigns.

Ultimately, the presence of FOMO is keeping transaction activity buoyant even as economic signals remain mixed. While momentum appears strong, disciplined assessment and long-term focus remain essential for buyers seeking sustainable value in a competitive and psychologically charged environment.