Anxiety and despair for many buyers who submit offer after offer and get beat out by all-cash no contingency offers.

Just plain fear. One of the lowest vibrational frequencies besides guilt and shame . . . lotta that going around these days. Reject outright!

On the other more positive side of this, a desire for greater freedom. This is bringing us so many people from the 3 West Coast states . . .

Frustration

Emotions vary from place to place, and in general it is  what we refer to as FOMO.  FEAR OF MISSING OUT!  

Some respond and some do not.  We are in the some do not category.  And fear is not an emotion we cater to.  A

All emotions at this point, some have been trying since early spring.

Bat. 

Crap.

Crazy. 

Oh wait, you said "market" ... 

FOMO is not the best reason but I think it could propel people into a larger or smaller home because things are great interest wise. Home prices are not standing still so it's jump or give up.

In small rural market where I slay real estate dragons, it is give me space, lots of land. Get me away from people when the buyer is a city dweller for too long. They want privacy, no HOA, no traffic, no crime, to feel connected to the community where they live where they don't lock doors and people smile, wave at each other. It's not a Walgreens commercial fantasy of a perfect World. It's common sense, affordable and more personal small town living getting out in nature. Concern about quality food, their mental health and family safety is a strong emotion pushing farm, land, rural property sales with lots of multi generational purchases. 

AS Ken Jones stated fear and greed drives peoles emotions. So fear of not getting  their piece of the pie and greed of not partipating in the process triggers the irrational thinking of many.

I don't find that emotion guides the market, inventory does.  We don't have much.

Insecurity mixed with fear...What we all want is no mystery question. How to get it needs attention. A home to purchase is a good sense & source of security and a home to sell is liberating experience for the better. 

Fear of loss.  That is what has driven prices up and created high demand.

Generally either fear or greed.

I don't know what emotion guides the market that is not well known.
However the emotion I see in buyers and sellers is extreme anxiety.
The role of the real estate professional to be the 'shock absorber' has never been more crucial.
We should all be aware, there are increasing number of options available to buyers and sellers that actually address this emotion.
One should never ever under estimate what I call the emotion that governs ALL behavior, the one Candice describes as low frequency wave length.....the avoidance of shame. This drives the anxiety.

The need for a home is a universal one.

How to defeat your inner Chicken Little and other fears