The physical aspect: the candle heats the air and expands it. This cancels the depletion of the oxygen temporarily and the water level stays down. When the oxygen is depleted, the candle goes out and the air cools. The volume of the air decreases and the water rises. The temporary temperature change delays the rise of the water. As several readers have pointed out, also the water condensation should be mentioned. While water is initially gas, it condenses and helps to delay the effect.