IMHO - Don't bother trying to 'time the market'. And DON"T listen to anything 'Koche' has to say on the issue of property!

I am making an assumption you are looking at buying purely as an owner occupier, and have no interest in property as an investment. I would suggest that while you are in a position to save to do so. A bigger deposit is going to help. LMI is a large expense, there is nothing wrong with paying this expense if you have too, or if it makes sense financially (ie, from an investment perspective), but if you can avoid it, you will literally be saving yourself Thousands of $$$$$. Not to mention the hassle of dealing with the LMI companies, and living in fear until complete approval by them is granted that they will insure you, whilst jumping through endless hoops and rediculous requests for paperwork they should alrady have (can you tell, I've deal with them on a couple of occaisions?? ).

A 20% deposit + approx another 5% for purchasing costs, is the best position to be in. It gives you alot more flexibility in terms of choosing loan products and intitutions, as well as with negotiating discounts or getting a property that comes slightly under value to what you might have predicted or hoped. It also means that you can either get a slightly more expensive place then otherwise (ie, max out your servicibility) or have less debt to the bank and thus lesser repayments.

Of course if you happen across something fabulous while you are still saving that larger deposit, you can always change your mind.