Should You Wait for a Property Crash in Adelaide?

The case for buying property in Adelaide right now.

Have you been waiting for a market crash to buy property in Adelaide? It might pay to think again!

When you’re thinking about buying property in 2024, it’s easy to get swept up in the idea of a 'property market crash' - especially when the media keeps throwing the term around as if it could happen any day now.

But while the idea of waiting to snag a bargain might seem sound in theory, it rarely translates this way in real life.

Instead, buying when it’s right for you - rather than trying to predict an unpredictable market - might be the smartest move you can make.

Here’s our take on why waiting for a market crash - particularly in a market like Adelaide - could actually cost you (big time).

What is ‘Market Timing’?

When it comes to real estate, market timing is the strategy of trying to predict when property prices will hit rock bottom, so you can purchase property at the lowest possible price.

This concept is appealing, because who wouldn't want to purchase a property at a bargain price, right?

But in reality, waiting for the 'perfect' time can often lead to endless delays, missed opportunities and disappointment.

Natalie Jones, Sales Director at We Connect Property, says, "I’ve seen clients hold off - sometimes for years - hoping for the market to drop, only to find that prices continually moved further out of their reach. By then they’ve missed out on some fantastic properties that would have been perfect for their family.”

And while many think they can outsmart the market, unfortunately the market usually wins.

“Real estate isn’t a game of perfect timing. It's always changing, and rarely does it align perfectly with our plans, so it’s about finding the right fit - and timing - for you,” she says.

Risks of trying to time the market

The market is a little like the ocean - constantly shifting and hard to predict. If you sit out there waiting for the perfect wave to arrive, you might end up missing all the good ones.

Despite what the news headlines tell us, market crashes are notoriously difficult to predict, as they’re influenced by a raft of economic political and social factors, all of which can change overnight and move in different directions.

For example, a sudden increase in interest rates can cool off the housing market, but elections, policy reforms, migration patterns - even international wars and global pandemics - can either exacerbate or counteract this effect depending on the dynamics at play.

The perfect example? COVID-19. This led to an unexpected surge in demand for suburban and rural properties as more people worked from home where before there was little growth predicted in these areas.

So forecasting any kind of crash with accuracy is nigh on impossible.

So buyers who wait for the perfect moment not only miss out on potential opportunities, but often end up buying at higher prices later, missing out on lost potential for equity growth too.

Natalie explains, “Many buyers miss out on excellent opportunities while waiting for the perfect moment that may never come.

“It's heartbreaking to see good opportunities slip away because of this wait-and-see approach.

“And even if a market crash does occur, it’s not a guarantee of lower prices across the board. Often, desirable properties maintain their value… or even appreciate. The key is to identify a stable market and act within it, rather than hoping for unpredictable downturns.”

Our message? Don't let the unpredictability of the market deter you from making a decision that could benefit you now.

Benefits of buying in a stable market

Put simply, a stable market is one with consistent prices and low volatility – meaning it’s a market with fewer surprises.

But why is it good for buyers?

Buying in a stable market is often preferable because it reduces the risk of sudden price drops (or increases!), provides a more secure investment environment and minimises uncertainty.

As Natalie points out, “In a stable market, buyers can take their time, do thorough research and make informed decisions without the urgency and panic that comes with a volatile, or crashing, market.

"This stability often leads to better long-term investments and more satisfaction with the purchase.”

Not to mention, your financial situation and lifestyle goals are way more important than trying to outplay the market.

So ask yourself - are you ready to settle down? Start a family? Move for work? Buy a first home?

If the answer is yes to any of these questions - or any others that affect how you see your life playing out – it makes much more sense to align the timing of your property purchase with these goals, rather than putting them off in order to save a few dollars on an asset that will, most likely, appreciate in value over time anyway.

Historical trends & lessons from the past

Of course, sometimes it takes looking backward to help us move forward with a sound strategy.

So what does the historical data say?

That waiting for a market crash to reach rock bottom often backfires.

Remember the 2008 financial crisis? If not, it pays to do a little digging.

Essentially, the property market crashed far and fast… but recovered just as quickly the following year.

Those who were holding out for prices to drop further as it dipped found themselves priced out when the market rebounded almost before their eyes.

Because they held out waiting for the downturn to head further south, they missed their best shot at picking up a bargain.

Hindsight is 20/20, right?

Even on a smaller scale, buyers who hesitate during minor market dips miss significant equity growth opportunities.

Natalie emphasises how waiting for a crash can be a flawed strategy.

“History tells us that trying to time the market is a gamble, and that is also has a way of repeating itself. But the good news is - those who learn from it can make better decisions."

Overview of Adelaide's property market

Right now, in 2024, Adelaide's property market is solid and continues to grow post- the record highs we’ve seen all over Australia in recent years.

Prices are still on the rise despite falls in other major capital cities, demand remains strong and experts expect continued stability for the foreseeable future.

“These recent trends indicate excellent market health, with no significant drop in sight, making now a really good time to buy,” says Natalie.

In addition, Adelaide’s local economy is tracking well, with thriving industries and job growth making it a stable place for property investment.

It offers a vibrant lifestyle with festivals, events, and a diverse dining scene, sought-after schools, excellent healthcare and plenty of recreational activities too.

“We’re certainly finding Adelaide becoming genuinely attractive option for both local and interstate buyers looking for long-term value.

“The community, culture, and amenities make it a perfect spot for families and individuals alike,” she says.

So if you’re waiting for a property market crash in Adelaide?

Given these stable market indicators, it seems you might be waiting a long time.

What do the experts say?

The overarching message is this: don’t let the fear of the unknown, or the clouded dream of snagging a bargain, keep you from making a smart move.

Natalie advises against holding out for a market crash, and reemphasises that the unpredictability of this strategy could see you paying more and missing out on opportunities.

“The longer you wait, the more you risk higher prices and increased competition,” she says.

"The cost of delay includes not just higher future prices but also missed opportunities for equity growth and even simple things like enjoying your new home sooner.

“I've seen too many buyers regret waiting, thinking they could outsmart the market. Trust the stability and make your move when you're ready, because often the best opportunities are seized by those who act based on current conditions rather than speculative futures," she continues.

"Take control of your own future by making the decision that's right for you now, not when you think the market may or may not come down.”

And if you’d like to learn more or explore your buying options? Get in touch with the experienced, local team at We Connect Property.

Natalie and the team are ready and waiting to offer personalised advice, tailored insights and assistance when it comes to buying property in Adelaide.

We’re here to help you navigate the Adelaide real estate market whenever you’re ready to buy.

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As property experts with over 21+ years combined experience in buying, selling and managing property in Adelaide, We Connect Property are ready and waiting to offer expert guidance and support when you need it most, and answer all your questions about buying your next property.

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And if you’re just getting started, or looking for valuable, buying, selling or property investment tips, tricks and advice? Check out these other handy articles on our blog:

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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.