Seven property market myths that could hurt your chances of buying a home

When people want to get into the housing market, they might believe a few myths about housing — and those myths may hurt your chances when you're buying.

Ray White Group chief economist Nerida Conisbee has identified seven myths that could lead potential homeowners astray, even before they begin searching for a property.

“Property markets constantly generate debate and discussion, often leading to misconceptions about how they work,” she said. “These myths can influence decisions about buying, selling, or investing in property – sometimes leading people to miss opportunities or make choices based on incorrect assumptions.”

Here are seven assumptions people make about the property market, and what they really say about real estate in 2025:

People often think there is an ideal time to buy a home, but trends can be hard to predict.

1. “There is an ideal time to buy a house.”

Ms Conisbee found many people think there’s a strategic moment to get into the housing market: making plans to buy at a certain time of year, or working off of predicted financial trends.

However, she was quick to point out even the experts get it wrong, no matter how much data they have.

“The best time to buy, sell, or invest in property is simply when you’re ready,” she said, “with enough savings, stable income, and clear housing needs.”

“Making property decisions based on your situation rather than market predictions usually works out better.”

If you do not time your purchase relative to your own financial stability, you can risk getting blindsided by stamp duty, legal fees and moving expenses.

House prices in some Australian areas can double in ten years, but others give homeowners a longer window. Picture: iStock

2. “House prices double every 10 years.”

With the cost of living crisis affecting everyone around Australia, people look to capital cities like Sydney and worry housing prices will double for every ten years that go by.

It’s a common claim with some truth to it: some suburb home prices have doubled in a decade, while some doubled in just three years.

However, it’s not a definitive statement, and these fears can be eased by taking a good look at where you want to buy.

“Different cities and regions can experience vastly different growth rates,” Ms Conisbee said. “Local economic conditions, infrastructure development, and population trends all play crucial roles in determining property price movements.”

2024 data showed it did take 10 years for house prices to double in Sydney, but cities like Melbourne and Adelaide took 14 years to double.

There is no guarantee housing prices might drop in the near future, but they may level out.

3. “House prices could drop back down. I should wait and buy when it gets lower!”

Many housing hopefuls dream of prices similar to years past, where the property market seemed less daunting. Unfortunately, unless the housing market sees a dramatic shift, it’s unlikely to occur any time soon.

Ms Conisbee said while events like the 2007-2009 financial crisis and the Covid-19 pandemic did affect house prices, these drops were brief – and only around six per cent.

“Housing markets have proven remarkably stable, even during major economic shocks,” she said. “Strong population growth and limited housing supply, especially in cities, continue to support prices.”

She added that a more likely scenario would be a levelling out of prices for a period of time. While this does not give new homeowners a clear window of when best to buy, a level market does give someone more time to choose before the next increase.

Landlords are regularly blamed for rising rents, but are often following the larger housing market.

4. “Rents are rising because of landlords.”

Most of us know of a bad landlord, either through personal experience or a horror story you heard from someone else. In a competitive market, many investors can be guilty of overcharging their residents – but Ms Conisbee said larger market trends were what dictated rising prices.

“What actually drives rent increases is the balance of rental properties versus people looking to rent,” she said, pointing to demand from a growing population of renters across the country. “Recent rent rises have more to do with housing shortages and increased demand than individual landlord decisions. This is why we often see rents stay flat or even fall in areas with lots of new apartments or declining populations.”

Ms Conisbee added a landlord might be incentivised to keep prices competitive, or risk tenants moving to different available properties.

A tenant’s ability to actually do this can vary, depending on their location and personal circumstances.

Negative gearing is a way for investors to reduce their taxes, but they’re one cog in the larger machine that is real estate.

5. “Negative gearing is why prices are so high.”

Negative gearing is often seen as an attractive prospect for property investors. If the cost of holding an investment property for a year is greater than the money it makes, the difference can be marked as a taxable loss: potentially reducing the tax the investor might normally