Are we experiencing a FOMO selling bump in inventory?
In many markets, inventory is increasing. The reasons seem pretty obvious (higher rates = lower affordability = less demand = more days on market = inventory starting to pile up).
However, I've been wondering if there might be an additional (and somewhat less discussed) cause of the inventory increases:
How many properties are being listed by sellers who have been stricken by a bad case of fear of missing out (FOMO)? Whether it's true or not, many property owners assume that we're at (or just past) a market peak, and that we might be on the precipice of a downturn (depending on who you ask). This mindset would likely encourage some property owners who were previously thinking of selling to pull the trigger.
Although it's usually not advisable to try to time markets, plenty of people do try to time markets (often at their own peril). I assume that some listings are FOMO sellers, but I have no idea whether FOMO selling is occurring at a large enough scale to have any tangible impact on the market....what do you think?
Interested to hear BP folks' perspectives!