There has been an increasing trend in real estate purchases in the past couple of years. Homes have been selling like hotcakes, so to speak, and many have declared 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 present real estate market and why real estate sales are not most likely to decrease for some time to come.
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Structure Business Not Thriving As Much As Real Estate Sales in Erskine Park
There are many reasons the real estate market slows down. One such reason is because of an over-expansion of homes for sale. Although the home structure business has been rather successful, it still has a methods to enter order to catch up with real estate sales. This is an advantage because there are not rather sufficient homes to fulfill the present need and that will keep the market flourishing for some time. So long as the supply doesn’t swallow the need, the real estate market will continue to succeed.
Interest Rates Stay Affordable
While rates of interest have increased rather when compared to the past couple of years they are still fairly low and make many individuals want to buy a home. These appealing rates help keep the real estate market going because the majority of people need loans to purchase homes and low-interest rates make the general purchase cheaper. So long as the rates of interest remain rather steady, potential homebuyers will still be expressing excellent interest in the purchase of a home simply because low-interest rates make the investment more inexpensive.
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 portion when their repaired 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 resulted in stabilizing the real estate market and has also attracted people to purchase a home through an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in Erskine ParkNot As Common As It May Seem
Some people have been worried that flipping of real estate, which is the purchase and fast sale of the real estate thereafter, is something that may trigger the real estate bubble to burst. However, those who have expressed concern can rest simple knowing that the percentage increase with regard to flipping from 1998 to 2003 is only 1%. When viewing the general plan of things, a 1% increase within 5 years is not something that needs to trigger too much concern.
The real estate market has been doing rather well in the past couple of years and the above elements 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 stays to be seen. However, the real estate market appears to be staying consistent and while home prices may continue increasing supply is not outweighing need and individuals keep purchasing. So, only the future will show when the real estate market begins decreasing.