Everyone Is Waiting. But What Are You Actually Waiting For?
There is a lot of hesitation in the property market right now.
Property prices have been falling. Interest rates remain a concern. Investor activity has slowed. And many buyers seem to have adopted the same strategy:
Wait and see.
That reaction is understandable.
But if you are thinking about buying a home, particularly your first home, there is another question worth asking:
What exactly are you waiting for?
The latest ABS figures show just how much activity has slowed. The number of new home loan commitments fell 5.4% in the June quarter, with investor loans down 8.6% and first home buyer commitments down 2.9%.
Meanwhile, Australian property prices fell for a fifth consecutive month in August, with Sydney and Melbourne among the markets recording some of the largest declines.
For buyers who are financially ready, a quieter market may be worth looking at differently.
Here are three things to consider.
Are you waiting for property prices to fall further?
It is tempting to think:
“I'll wait another six months. Prices might be cheaper.”
And they might be.
No one can know exactly where the bottom of a property cycle will be until after it has happened.
The problem is that the best buying conditions and the point where buyers feel most confident don't necessarily arrive at the same time.
When confidence returns, other buyers often return with it.
That can mean more people at open homes, more competition for good properties and less negotiating power.
A softer market can potentially offer something buyers rarely get when prices are rising quickly:
time.
Time to inspect properly.
Time to compare properties.
Time to negotiate.
And time to walk away if the deal doesn't make sense.
That doesn't mean buying simply because prices have fallen.
It means asking whether waiting for the perfect market could cause you to overlook the opportunities already available today.
Are you waiting for interest rates to improve?
This is another common reason buyers delay.
The thinking is simple:
“I'll wait until rates come down, then I'll buy.”
But property markets don't move in isolation.
If borrowing conditions eventually improve, buyers who have been sitting on the sidelines may return.
Improved borrowing capacity can also increase competition and place upward pressure on property prices.
So waiting for lower rates does not necessarily guarantee that buying will become easier.
The purchase price, interest rate, competition from other buyers and your own borrowing capacity all interact.
Rather than trying to predict the perfect combination, it may be more useful to ask:
Can I comfortably afford to buy under today's conditions?
If the answer is yes, the decision can then be based on the property, your financial position and your longer-term plans, rather than trying to forecast what the Reserve Bank or property market will do next.
Are you waiting until you feel more confident?
This might be the biggest one.
When property markets are booming and everyone is buying, buying can feel safe.
When prices are falling and headlines are negative, it can feel risky.
But sometimes confidence follows the market rather than leads it.
The uncomfortable part is that periods with less competition often occur precisely because other buyers are nervous.
That doesn't mean uncertainty should be ignored.
It means separating market sentiment from your own financial position.
You may have a stable income.
You may have built a strong deposit.
Your repayments may comfortably fit within your budget.
You may have found a property you would be happy to own for many years.
If those things are true, then the fact that other buyers are waiting may not necessarily be a reason for you to do the same.
You don't need to pick the bottom of the market
Buying a home shouldn't depend on successfully predicting the next interest rate movement or identifying the exact bottom of the property market.
Very few people can do either consistently.
What matters more is whether:
- you can comfortably afford the repayments
- you have an appropriate deposit and financial buffer
- the property suits your needs
- you plan to hold the property for the appropriate timeframe
- and buying fits your broader financial goals
A slow property market isn't automatically a bad market for buyers.
For someone who is financially ready, less competition, softer prices and more negotiating time can potentially create opportunities that weren't available when everyone else was trying to buy.
So, what are you actually waiting for?
Maybe waiting is the right decision.
Your deposit may not be ready.
Your borrowing capacity may need to improve.
Or your circumstances may simply mean buying isn't right for you yet.
But if the only reason you're waiting is because everyone else appears to be waiting too, it may be worth taking another look.
At Kredi, we can help you understand:
- how much you may be able to borrow
- what repayments could look like today
- what price range may be comfortable
- what deposit you may need
- and whether buying now or continuing to wait makes more sense for your circumstances
You don't need to predict where the property market will be in six months.
You need to understand whether buying today works for you.