There has been an increasing trend in real estate purchases in the past few years. Homes have been offering like hotcakes, so to speak, and numerous have declared that this real estate boom is far from being over. There are a few reasons that have been mentioned which give some insight into the present real estate market and why real estate sales are not most likely to decrease for a long time to come.
Remember we have offices in Berowra Heights, Mount Kuring-Gai, Berowra Waters, Cowan, Cottage Point, Berrilee, Mount Colah, Hornsby Heights, Duffys Forest, Ku-Ring-Gai Chase and Berowra
Structure Business Not Thriving As Much As Real Estate Sales in Berowra
There are numerous reasons that the real estate market decreases. One such reason is due to an over-expansion of homes for sale. Although the house building business has been quite successful, it still has a ways to enter order to catch up with real estate sales. This is a good thing because there are not quite sufficient houses to meet the present need which will keep the marketplace growing for a long time. So long as the supply doesn’t swallow the need, the real estate market will continue to flourish.
Interest Rates Remain Affordable
While interest rates have increased somewhat when compared with the past couple of years they are still reasonably low and make lots of people wish to purchase a home. These appealing rates help keep the real estate market going because many people need loans to acquire homes and low-interest rates make the general purchase less expensive. So long as the interest rates remain somewhat steady, potential homebuyers will still be revealing great interest in the purchase of a home simply because low-interest rates make the investment more economical.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have adjustable-rate mortgages (ARMs), they might have worried about the adjustable rate part when their fixed rate part was diminished. 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 supporting the real estate market and has also brought in people to acquire a home by means of an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in BerowraNot As Widespread As It May Seem
Some people have been concerned 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 concern can rest easy knowing that the percentage increase with regard to flipping from 1998 to 2003 is only 1%. When viewing the general scheme of things, a 1% increase within 5 years is not something that ought to trigger excessive concern.
The real estate market has been doing quite well in the past few years and the above aspects integrate to make what some belief is a real estate bubble that makes certain to burst. Whether this real estate boom continues for a very long time to come is something which remains to be seen. However, the real estate market appears to be staying stable and while house rates might continue going up supply is not outweighing need and individuals keep purchasing. So, only the future will reveal when the real estate market begins slowing down.