What a great start to 2015! The Melbourne property market continues to perform strongly and has been one of the stand out markets in Australia over the past 10 years. Healthy economic conditions such as historically low interest rates and relatively full employment have meant home buyers are confident and willing to spend. The most buoyant segment of the Manningham and Maroondah real estate markets has been the $500,000 - $1,000,000 price range. Sale prices have been exceptional due to a number of factors.
Firstly, the trend by baby boomers to downsize. Many retirees are looking at lifestyle changes and purchasing properties that suit their needs and enable them to travel. Modern single level homes on easy-care allotments have been the main beneficiaries.
Secondly, investors have re-entered the market after the GFC and are looking for better returns than bank interest in a safer environment than shares.
Thirdly, first home buyers still want to live close to friends and family and will compete for the limited stock available in our area. Essentially it’s a ‘perfect storm’ of factors that have converged to push prices along. Add to this the local factors including the expansion of Eastland, the benefits of Eastlink and the popularity of our local Schools and its easy to see why the central Eastern Suburbs.