There has been an increasing trend in real estate purchases in the past few 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 few reasons that have been pointed out which give some insight into the current real estate market and why real estate sales are not most likely to decrease for some time to come.
Remember we have offices in Lane Cove West, Linley Point, Riverview, North Ryde, Gladesville, Lane Cove, Huntleys Cove, Chatswood West, Hunters Hill, Putney and East Ryde
Structure Business Not Booming As Much As Real Estate Sales in East Ryde
There are many reasons the real estate market slows down. One such reason is because of an over-expansion of houses for sale. Although the home building business has been rather lucrative, it still has a ways to go in order to overtake real estate sales. This is an advantage because there are not rather sufficient houses to satisfy the current need and that will keep the market booming for some time. So long as the supply doesn’t swallow the need, the real estate market will continue to prosper.
Rates 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 lots of people want to purchase a house. These attractive rates assist keep the real estate market going because many individuals need loans to purchase houses and low-interest rates make the total purchase less expensive. So long as the rates of interest remain somewhat steady, prospective property buyers will still be revealing 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 worried about the adjustable rate portion when their fixed rate portion was depleted. Recently the fixed-rate portion 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 attracted individuals to purchase a house by means of an ARM that has this new lengthier fixed-rate period.
Turning of Real Estate in East RydeNot As Widespread As It May Seem
Some individuals have been worried that flipping of real estate, which is the purchase and fast sale of the real estate afterwards, is something that might trigger the real estate bubble to burst. Nevertheless, those who have revealed concern can rest easy understanding that the portion boost with regard to flipping from 1998 to 2003 is only 1%. When seeing the total plan of things, a 1% boost within 5 years is not something that must trigger too much concern.
The real estate market has been doing rather well in the past few years and the above elements integrate to make what some belief is a real estate bubble that is sure to burst. Whether this real estate boom continues for a very long time to come is something which stays to be seen. Nevertheless, the real estate market seems to be remaining stable and while home rates might continue going up supply is not outweighing need and people keep buying. So, only the future will reveal when the real estate market starts decreasing.