Why waiting for the property market to drop costs you in the long run

With the recent pause in interest rates, the Reserve Bank of Australia (RBA) gave us all a great reminder that we really never know what the property market might do.

When Governor Bullock kept rates on hold, all the economists and media pundits were wrong with their predictions. It’s a good lesson to remind us that there is no perfect time to get into the market, because you never know what might happen.

In property, we often hear people saying they are waiting for the market to drop so they can buy. While on the surface this sounds smart, the reality is that by the time they wait for the perfect time, the market has likely already passed them by.

Waiting, in this case, could end up costing you more than just money. It could cost you momentum, leverage, and peace of mind.

The cost of delaying

Let’s break this down with numbers. Say you’re eyeing a $600,000 property, but you’re hoping it drops by 10 per cent. That’s a $60,000 potential saving. On paper, it looks like a good reason to wait. But what if, instead, the market moves up just 5 per cent over the next 12 months? That same property is now worth $630,000, and you’ve lost your window.

Even if it stays flat, the cost of waiting, in terms of missed rental income and capital growth, adds up. In a strong market, even a six-month delay can cost tens of thousands in opportunity. Now add rising construction costs, limited housing supply, population growth, and tightening rental markets to the mix, and you can see why trying to “wait it out” often backfires.

Timing the market vs time in the market

There’s a saying in real estate: “Don’t wait to buy property, buy property and wait.” It’s not just a catchy phrase.

Property wealth is rarely built by perfectly timing the bottom. It’s built by holding high-quality assets over time. Those who tried to pick the peak or the trough are often still on the sidelines, watching prices rise while trying to find the perfect entry point.

Meanwhile, those who got in early, imperfect timing and all, benefited from years of growth and leveraged that equity to grow their portfolios further. The key isn’t guessing when the market will dip. It’s knowing what to buy, where to buy, and how to hold it long-term.

Good property performs over decades, not weeks. The sooner you’re in the market with the right asset, the sooner you can start building equity and momentum.

Inflation doesn’t wait and neither do interest rates

A big reason many people pause is fear around interest rates. And yes, rates have risen quickly during this past cycle. But here’s what most forget: inflation eats away at the value of your savings while property prices and rents tend to keep pace or rise.

In inflationary environments, real assets like property become more valuable. Meanwhile, the money you’ve saved up waiting for a market correction might buy you less than it could’ve a year ago.

In other words, you might lose your buying power while waiting for a “better deal”. Worse still, banks may tighten lending further, meaning you qualify for less in the future than you do now. So even if prices dip, you may not be in a position to take advantage of it.

The myth of the perfect time

If you’re waiting for all green lights, low prices, low interest rates, lots of choice, and minimal competition, you’ll be waiting forever. The market never ticks all the boxes at once.

The best time to buy is when you have the financial capacity, when you’re buying the right property in a good location, and when you plan to hold it long enough to ride the cycles.

Real estate is cyclical. There are always ups and downs. But those who move during periods of uncertainty tend to benefit most when confidence returns. The window to buy well is often at its widest when others are hesitant.

Opportunity exists in every market

Right now, we’re seeing smart investors move decisively. They’re not worried about the headlines, instead they’re analysing data, understanding local markets, and buying properties with strong fundamentals. They’re also negotiating harder. When others are hesitant, sellers become more flexible. Off-market opportunities open up. Conditions become more favourable.

It’s not about rushing in, it’s about moving with strategy, not fear. Opportunity doesn’t disappear when the market softens. It just looks different. Those who know how to spot value, negotiate well, and take a long-term view often build their portfolios faster, because they’re buying when others aren’t.

Waiting for the market to drop might feel like playing it safe. But in many cases, it’s costing buyers more than they realise both financially and emotionally.

Rather than asking, “Is now the perfect time?”, a better question might be, “What is the cost of doing nothing?” Because often, doing nothing is the most expensive move of all.