The million dollar question homeowners are asking themselves in 2026? Do I sell now or wait?
It’s a tricky one, and of course, the answer is always: it depends. But there are some factors that can guide your decision.
It may be logical to wait
The market is very slow right now. At the time of writing, in winter 2026, we’re seeing higher interest rates with three raises this year. Cost of living expenses are hurting everyday families. Mortgage holders are feeling the pain of higher repayments. Naturally many of us are looking to cut expenses. This in turn flows on to small business, retail, hospitality and entertainment. And they cut their spending in turn, and the vicious cycle hurts many of us.
So yes, if you sell your home in 2026, balance your expectations. You may not command the same price it would have sold for in the 2021/22 market boom. Back then, some suburb median prices jumped by up to 20%. Be wary of expecting those kinds of prices now.
So of course it makes sense to wait until interest rates ease and consumer confidence strengthens. However it is not always that simple, and there is no blanket rule for everyone.
You should only wait if you can afford to wait
There are some homeowners in Melbourne who are wondering how long they can hold on. If you’ve cut every possible expense and are living with mortgage stress, things are no doubt tough. Waiting may no longer be an option. Most experts are predicting a slow recovery, so don’t expect interest rates to fall for another 18 months. And that is a conservative estimate. If you’re already living under that pressure, it may make sense for you to get some financial advice to see if you need to sell now.
Whereas if you are feeling comfortable with your ability to maintain your financial position for a year or longer, you are in a strong position to wait. If you are financially comfortable and satisfied living where you are, it makes sense to wait for more favorable market conditions.
What about lifestyle factors?
If you are wondering whether to sell now or wait, you may be thinking only of your financial situation. But if you’re living in a home that no longer suits you, there are non-financial costs.
Perhaps you want to be closer to family, or free up equity for other investments or adventures like travelling. If you want to move interstate or overseas, you’re putting your life on hold for another year or so—is that worth it? Many homeowners forget about those lifestyle factors. If you are moving to be closer to children or grandchildren, every year you wait is a year you miss. If you are waiting till retirement, you might find yourself sacrificing your golden years. And all the plans for the future will have to wait. As much as the financial considerations are important, these are valuable factors to consider also.
There is no guarantee things will be better
Unfortunately with this uncertainty, this could be normal for a few years. So if you are deciding whether to sell now or wait, you must presume that the wait will be a long one.
Most economic experts are predicting rates holding for the rest of 2026 and only a few cuts in 2027. This means it’s likely that the property market will be slow to recover. It could even be longer. That may be a doable wait for some homeowners, whereas for others it will be difficult. Personally, I don’t feel the market will be any better for at least 12, perhaps 24 months.
The more equity you have in your home, the better
If you bought in 2010 and have renovated or rebuilt your home over the years, you likely have very good equity. If you decided to sell, you would likely still walk away with a solid return on a 16-year investment.
Whereas if you purchased after 2020, you paid far more for your property, and you’ve likely not made a dent in repayments over that time. So in all likelihood, you have less equity in your home, so you may be better off waiting a year or two to build more equity and see market growth.
The quality of your home matters
There’s plenty of buyers still around in the market, but there’s not much to purchase. So if you have a quality home, with little else like it on the market, you can gain confidence that buyers will still be interested. I always say, if you competed to purchase your property originally, you will have competition when you come to sell.
Whereas if you are selling a rundown investment property that has been neglected and isn’t located in an ideal pocket of your suburb, you may struggle. Similarly, if there’s a glut of homes just like yours on the market you may also struggle to stand out to cautious buyers.
One market that can benefit from selling right now
Upsizers can strike while the iron is hot by selling now and purchasing in a higher price bracket. The larger house in the better suburb may be down 10-20% on average. So if you are upsizing, you have the opportunity to really capitalise. Yes, when you sell you may not get the highest possible price, but you should be able to purchase strongly too. This can be an optimal time for upsizers to act strategically. However we do recommend being cautious.
The higher end of the market is more immune to pressures
Buyers who are looking at the upper end of the property market are likely to be fabulously wealthy and not as concerned with economic trends. These buyers do also tend to be educated about markets and will be watching and informed. So if you are looking to sell to this kind of buyer, you may find pressures such as tightened financing and higher interest rates are not such a factor in your price bracket. There are of course fewer buyers to find in the market when you get above $6million but those buyers aren’t struggling with cost of living as much as the rest of the market either.
You can always test it
If you really want to be sure what your home is worth, you can always put it to the market. You can offer it to an agent as an off-market listing. This will avoid expensive marketing costs, and you can test it, if you don’t get the level of interest you seek, you can always withdraw the property from the market . Off market sales are quite common in quieter markets so this can be a discrete and sensible way to test the true level of market interest in your property.
If you do sell, sell early
My strong advice if you do choose to sell in 2026—sell early. Often we see a flurry of properties coming on the market in spring time. The traditional idea has been that the spring flowers and sunny weather show your home in its best light. But if you wait till September or October to sell you’ll be stuck with plenty of competition. Getting in ahead of the market is a wiser move for many. I’d generally recommend looking at selling earlier when buyers are hungry for quality and there’s slim pickings on the market. This would mean selling in August or September as a priority. If you’re not ready by November or December you might be better to wait. Instead, go early in the new year to take advantage of the pent up demand after the market has shut down over the Christmas and school holiday period..
To recap: should I sell now or wait?
- It is often wise to wait in a slow market, but only if you can afford it
- If you do choose to wait, be ready to wait 12-24 months at least for the market to start recovering
- Consider your lifestyle factors – what other sacrifices do you make by waiting?
- If you have strong equity in your home you may still be in a good place to sell now
- Consider the quality of your home – buyers will always compete for quality
- Upsizers are in a strong position to sell now and purchase in a higher price bracket
- The upper end of the market is often immune to other pressures
- You can always test the market with an off-market listing
- If you do sell in 20206, sell early – August or September are preferable than November or later
