There has been an increasing pattern in real estate purchases in the past couple of years. Houses have been offering like hotcakes, so to speak, and many have claimed that this real estate boom is far from being over. There are a couple of reasons that have been cited which give some insight into the existing real estate market and why real estate sales are not most likely to reduce for a long time to come.
Remember we have offices in Earlwood, Bardwell Valley, Bexley North, Turrella, Arncliffe, Bexley, Banksia, Clemton Park, Canterbury, Kingsgrove and Bardwell Park
Structure Business Not Flourishing As Much As Real Estate Sales in Bardwell Park
There are many reasons the real estate market slows down. One such reason is due to an over-expansion of houses for sale. Although the home structure business has been rather successful, it still has a ways to go in order to catch up with real estate sales. This is a good thing because there are not rather sufficient homes to fulfill the existing demand which will keep the marketplace growing for a long time. So long as the supply doesn’t swallow the demand, the real estate market will continue to flourish.
Rate Of Interest Stay Affordable
While rates of interest have increased somewhat when compared to the past number of years they are still relatively low and make many individuals wish to purchase a house. These attractive rates help keep the real estate market going because many people need loans to acquire houses and low-interest rates make the total purchase more economical. So long as the rates of interest stay somewhat stable, prospective homebuyers will still be expressing excellent interest in the purchase of a house simply because low-interest rates make the investment more cost effective.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have variable-rate mortgages (ARMs), they might have stressed over the adjustable rate part when their fixed rate part was depleted. Just recently the fixed-rate part of the ARM has been increasing with regard to the length of years in which it is active. This has led to stabilizing the real estate market and has also brought in people to acquire a house by means of an ARM that has this new lengthier fixed-rate duration.
Flipping of Real Estate in Bardwell ParkNot As Widespread As It May Seem
Some people have been worried that flipping of real estate, which is the purchase and quick sale of the real estate afterwards, is something that might trigger the real estate bubble to burst. However, those who have expressed issue can rest easy knowing that the portion boost with regard to flipping from 1998 to 2003 is just 1%. When seeing the total plan of things, a 1% boost within 5 years is not something that should trigger too much issue.
The real estate market has been doing rather well in the past couple of years and the above factors combine to make what some belief is a real estate bubble that is sure to burst. Whether this real estate boom continues for a long time to come is something which stays to be seen. However, the real estate market seems to be staying steady and while home prices might continue increasing supply is not outweighing demand and individuals keep purchasing. So, just the future will reveal when the real estate market begins decreasing.