With interest rates rising, should you buy now or wait to see what happens?

Westpac is also predicting triple rate hikes by the end of 2026, which is spurring some buyers to act quickly – and others to sit on the fence, biding their time. Economist and mortgage broker Joseph Daoud of Simple Finance, however, urges potential buyers to seek financing approval as soon as possible so they can move if they see an opportunity.

“With rates expected to remain elevated and inflation still a factor, we’re likely to see some slowdown in price growth certain areas,” he says.

“But structural supply constraints mean prices aren’t likely to fall significantly. Buyers who act strategically, secure pre-approval early, and move decisively will be in a stronger position than those who wait.

Already, the market is weakening, with Domain figures showing clearance rates have slipped below 60 per cent. Yet buyers’ advocate Rich Harvey, chief executive of Propertybuyer Australia, takes that as a sign for buyers to act counter-cyclically.

They might expect demand to fall with interest rate rises, and then price growth to slow or tank, so they’ll get a bargain, but nothing is so straightforward. The direction and strength of those forces could vary greatly between locations, capital cities and property types.

“Peak uncertainty can also create peak opportunity,” he says.

“When everyone is running scared with interest rates rising, there might be five bidders or even two, when there might normally be 10. So, whether you should buy now or later is probably the wrong question.

“Instead, we should be asking, ‘Can you afford to buy now, and how long are you prepared to hold that property?’ It’s very hard to time your entry into the market exactly as you wish.

“We don’t know whether inflation will persist with government spending and oil prices. But our economy is fairly resilient, and we know that, over time, property always does well.”