There has been an increasing pattern in real estate purchases in the past couple of years. Homes have been offering like hotcakes, so to speak, and lots of have claimed 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 Zetland, Centennial Park, Moore Park, Randwick, Kingsford, Waterloo, Eastlakes, Daceyville, Beaconsfield, Rosebery and Kensington
Structure Business Not Thriving As Much As Real Estate Sales in Kensington
There are lots of reasons the real estate market slows down. One such reason is due to an over-expansion of homes for sale. Although the home structure business has been quite successful, it still has a methods to go in order to overtake real estate sales. This is an advantage because there are not quite enough houses to satisfy the existing need which will keep the marketplace growing for some time. So long as the supply does not swallow the need, the real estate market will continue to succeed.
Rates Of Interest Remain Affordable
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 home. These attractive rates assist keep the real estate market going because many people need loans to buy homes and low-interest rates make the total purchase cheaper. So long as the interest rates stay rather stable, potential homebuyers will still be expressing fantastic 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 adjustable-rate mortgages (ARMs), they may have stressed over 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 stabilizing the real estate market and has also attracted people to buy a home by means of an ARM that has this new lengthier fixed-rate period.
Turning of Real Estate in KensingtonNot As Prevalent 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 thereafter, is something that might cause the real estate bubble to burst. However, those who have expressed concern can rest easy knowing that the portion increase with regard to flipping from 1998 to 2003 is only 1%. When seeing the total scheme of things, a 1% increase within 5 years is not something that should cause too much concern.
The real estate market has been doing quite 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 time to come is something which stays to be seen. However, the real estate market seems to be staying stable and while home prices might continue going up supply is not exceeding need and people keep buying. So, only the future will reveal when the real estate market starts decreasing.