John McGrath

Worst mistake buyers can make in boom

PHOTO: John McGrath said it was one of the strongest markets he had ever seen. Picture: John Feder Source: News Corp Australia

Real estate tycoon John McGrath has warned buyers need to avoid getting swept up in the current market hype and has given home seekers some stern advice.

Home prices may be skyrocketing at levels rarely seen in Sydney’s history but the worst thing buyers in this market can do is “panic”, real estate veteran and McGrath Estate Agents founder John McGrath claims.

Mr McGrath told The Daily Telegraph it was natural for buyers to develop a sense of FOMO, or fear of missing out, when seeing 10 or more bidders vying for a home at auction but cautioned buyers needed to be careful.

“You don’t want to stretch yourself,” he said. “If you can’t afford the prices any more, you need to change location. It’s best to be flexible in this market.”

He added that it was one of the strongest markets he had ever seen.

The “social proof” of friends or family members jumping into the market could also put pressure on buyers to act quickly but some perspective was needed, Mr McGrath said.

“I am telling people don’t panic, but don’t delay because prices are going up,” he said.