It would take a lot of time and work to have Erebor ready for any dragon, but they could do it, if Smaug allowed them the time. He doesn't see it happening. Still, he wants to trust Bilbo, so for now they will see if the dragon leaves.

They gather the ponies in a small underpass that would at least hide them from Smaug's view, or they hope, the dwarves crowded in among them tightly.

"So now we wait here for the dragon to come out and eat us, is it?" Dwalin grumbles, not at all liking any of this. Thorin gives him a look, as if to tell him he doesn't like this either, but they need to trust their burglar. The other dwarf just grumbles more.