There has been an increasing pattern in real estate purchases in the past few years. Houses have been offering like hotcakes, so to speak, and lots of 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 present real estate market and why real estate sales are not likely to reduce for some time to come.
Remember we have offices in Burwood Heights, Strathfield South, Croydon Park, Burwood, Belfield, Strathfield, Croydon, Ashbury, Campsie, Ashfield and Enfield
Building Business Not Booming As Much As Real Estate Sales in Enfield
There are lots of reasons the real estate market slows down. One such reason is because of an over-expansion of homes for sale. Although the house structure business has been rather successful, it still has a methods to go in order to overtake real estate sales. This is an advantage because there are not rather sufficient homes to satisfy the present need which will keep the marketplace expanding for some time. So long as the supply does not swallow the need, the real estate market will continue to flourish.
Interest Rates Remain Reasonable
While interest rates have increased rather when compared to the past couple of years they are still fairly low and make many people want to purchase a house. These appealing rates assist keep the real estate market going because most people need loans to acquire homes and low-interest rates make the total purchase less costly. So long as the interest rates stay rather steady, prospective homebuyers will still be expressing excellent interest in the purchase of a house simply because low-interest rates make the investment more affordable.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have variable-rate mortgages (ARMs), they may have stressed over 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 resulted in supporting the real estate market and has likewise attracted people to acquire a house via an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in EnfieldNot As Widespread As It Might Seem
Some people 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 expressed concern can rest easy knowing that the portion increase with regard to flipping from 1998 to 2003 is just 1%. When seeing the total plan of things, a 1% increase within 5 years is not something that should 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 remains to be seen. Nevertheless, the real estate market seems to be staying consistent and while house costs might continue increasing supply is not outweighing need and people keep buying. So, just the future will show when the real estate market starts decreasing.