Eastern Suburbs Property News

After a strong year for Eastern Suburbs real estate in 2007, 2008 has been slow.

The Westpac Melbourne Institute Index of Consumer Confidence has fallen to levels not seen for some 15 years, when interest rates were 18%. We believe however that the fundamentals of the Eastern Suburbs real estate market remain very sound.  There is no question that there are more properties for sale now then there have been over the past 2 years and that there are less buyers in the marketplace.   We are still however recording great results.

Many are forecasting that real estate prices will fall as we move through 2008 and that selling now will see a substantially better price than waiting until later in the year and indeed into 2009.  Global credit market problems and inflation have driven interest rates to their current levels. The recent rate reduction in September this year is likely to be the start of a downward cycle in interest rates.

Buyer sentiment is currently low although as mortgage rates decline during the next 12 to 18 months we expect demand to increase.

The booming markets are behind us, however, quality properties marketed well always command strong interest from buyers. Whilst undoubtedly a great deal more information will continue to surface in the weeks and months ahead which will further influence buyers’ confidence, we believe that, with what is known at this point in time, should you decide to sell in 2008, that a good price can be achieved with effort. We will always endeavour to get the best possible price for your property.

We know we have the experience, resources and track record to provide our clients with the best possible service. We also believe that we will continue to produce the best possible outcomes in the current economic climate.