There has been an increasing trend in real estate purchases in the past couple of years. Homes have been offering like hotcakes, so to speak, and many have declared 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 current real estate market and why real estate sales are not likely to reduce for some time to come.
Remember we have offices in Bushells Ridge, Charmhaven, San Remo, Doyalson, Wallarah, Wyee, Lake Haven, Woongarrah, Colongra, Buff Point and Blue Haven
Structure Business Not Booming As Much As Real Estate Sales in Blue Haven
There are many reasons why the real estate market slows down. One such reason is due to an over-expansion of houses for sale. Although the home building business has been quite successful, it still has a ways to enter order to overtake real estate sales. This is an advantage because there are not quite sufficient homes to fulfill the current need and that will keep the market growing for some time. So long as the supply does not swallow the need, the real estate market will continue to prosper.
Interest Rates Remain Affordable
While rate of interest have increased somewhat when compared with the past couple of years they are still reasonably low and make many people wish to purchase a home. These appealing rates assist keep the real estate market going because most individuals need loans to acquire houses and low-interest rates make the total purchase more economical. So long as the rate of interest stay somewhat steady, prospective homebuyers will still be expressing excellent interest in the purchase of a home simply because low-interest rates make the investment more budget friendly.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have variable-rate mortgages (ARMs), they may have worried about the adjustable rate part when their repaired 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 supporting the real estate market and has likewise drawn in individuals to acquire a home through an ARM that has this new lengthier fixed-rate duration.
Turning of Real Estate in Blue HavenNot As Common As It Might Seem
Some individuals have been worried that flipping of real estate, which is the purchase and fast sale of the real estate thereafter, is something that might trigger the real estate bubble to burst. Nevertheless, those who have expressed issue can rest easy understanding that the portion increase with regard to flipping from 1998 to 2003 is just 1%. When seeing the total scheme of things, a 1% increase within 5 years is not something that ought to trigger too much issue.
The real estate market has been doing quite 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 period of time to come is something which remains to be seen. Nevertheless, the real estate market seems to be remaining consistent and while home prices might continue going up supply is not outweighing need and people keep buying. So, just the future will reveal when the real estate market starts decreasing.