There has been an increasing pattern in real estate purchases in the previous few years. Homes 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 pointed out which give some insight into the existing real estate market and why real estate sales are not likely to reduce for some time to come.
Remember we have offices in Matcham, Holgate, Erina, Wamberal, Picketts Valley, Terrigal, Mount Elliot, Springfield, North Avoca, Avoca Beach and Erina Heights
Building Business Not Thriving As Much As Real Estate Sales in Erina Heights
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 home building business has been quite successful, it still has a methods to go in order to overtake real estate sales. This is a good idea because there are not quite adequate houses to meet the existing need and that will keep the marketplace flourishing for some time. So long as the supply doesn’t swallow the need, the real estate market will continue to flourish.
Rates Of Interest Remain Reasonable
While rate of interest have increased rather when compared to the previous couple of years they are still fairly low and make lots of people want to purchase a home. These attractive rates assist keep the real estate market going because many individuals need loans to buy homes and low-interest rates make the general purchase more economical. So long as the rate of interest remain rather stable, prospective property buyers will still be expressing great 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 might have fretted about the adjustable rate portion when their fixed rate portion was diminished. Just 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 buy a home by means of an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in Erina HeightsNot As Prevalent As It Might Seem
Some individuals have been concerned that flipping of real estate, which is the purchase and quick sale of the real estate thereafter, is something that may cause the real estate bubble to burst. Nevertheless, those who have expressed issue can rest easy understanding that the percentage boost with regard to flipping from 1998 to 2003 is just 1%. When viewing the general plan of things, a 1% boost within 5 years is not something that ought to cause too much issue.
The real estate market has been doing quite well in the previous few years and the above aspects 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 appears to be remaining constant and while home prices may continue increasing supply is not surpassing need and individuals keep buying. So, just the future will reveal when the real estate market starts slowing down.