There has been an increasing trend in real estate purchases in the past few years. Houses have been selling like hotcakes, so to speak, and lots of have claimed that this real estate boom is far from being over. There are a few reasons that have been pointed out which give some insight into the current real estate market and why real estate sales are not likely to decrease for some time to come.
Remember we have offices in The Rocks, Millers Point, Barangaroo, Milsons Point, Kirribilli, McMahons Point, Sydney, Lavender Bay, Balmain East, Woolloomooloo and Dawes Point
Building Business Not Thriving As Much As Real Estate Sales in Dawes Point
There are lots of reasons why the real estate market decreases. One such reason is because of an over-expansion of homes for sale. Although the house building business has been quite successful, it still has a methods 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 current need and that will keep the market expanding for some time. So long as the supply does not swallow the need, the real estate market will continue to succeed.
Rate Of Interest Remain Affordable
While rates of interest have increased somewhat when compared to the past couple of years they are still relatively low and make many individuals wish to buy a house. These attractive rates assist keep the real estate market going because most individuals need loans to purchase homes and low-interest rates make the overall purchase cheaper. So long as the rates of interest remain somewhat steady, prospective homebuyers will still be expressing fantastic interest in the purchase of a house simply because low-interest rates make the investment more budget-friendly.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have adjustable-rate mortgages (ARMs), they may have fretted about 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 supporting the real estate market and has also drawn in individuals to purchase a house by means of an ARM that has this new lengthier fixed-rate duration.
Turning of Real Estate in Dawes PointNot As Widespread As It May Seem
Some individuals have been concerned that flipping of real estate, which is the purchase and fast sale of the real estate afterwards, is something that may trigger the real estate bubble to burst. However, those who have expressed concern can rest easy knowing that the percentage boost with regard to flipping from 1998 to 2003 is only 1%. When viewing the overall plan of things, a 1% boost within 5 years is not something that should trigger too much concern.
The real estate market has been doing quite well in the past few years and the above factors integrate to make what some belief is a real estate bubble that makes certain to burst. Whether this real estate boom continues for a long period of time to come is something which remains to be seen. However, the real estate market seems to be staying constant and while house costs may continue increasing supply is not surpassing need and people keep purchasing. So, only the future will reveal when the real estate market begins decreasing.