There has been an increasing trend in real estate purchases in the past couple of years. Homes have been offering like hotcakes, so to speak, and many have declared that this real estate boom is far from being over. There are a couple of reasons that have been mentioned which give some insight into the current real estate market and why real estate sales are not likely to decrease for some time to come.
Remember we have offices in Sutherland, Yarrawarrah, Kirrawee, Woronora Heights, Grays Point, Woronora, Gymea Bay, Gymea, Jannali, Bangor and Loftus
Building Business Not Booming As Much As Real Estate Sales in Loftus
There are many reasons why the real estate market slows down. One such reason is due to an over-expansion of houses for sale. Although the home building business has been rather profitable, it still has a methods to enter order to catch up with real estate sales. This is a good thing because there are not rather sufficient houses to satisfy the current demand and that will keep the marketplace flourishing for some time. So long as the supply does not swallow the demand, the real estate market will continue to succeed.
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 many individuals want to purchase a home. These attractive rates help keep the real estate market going because many individuals need loans to buy houses and low-interest rates make the total purchase less expensive. So long as the rates of interest stay somewhat steady, potential property buyers will still be expressing terrific 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 fretted about the adjustable rate portion when their repaired 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 supporting the real estate market and has likewise drawn in individuals to buy a home by means of an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in LoftusNot As Prevalent As It Might Seem
Some individuals have been worried that turning 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 issue can rest easy understanding that the portion boost with regard to turning from 1998 to 2003 is just 1%. When viewing the total scheme of things, a 1% boost within 5 years is not something that needs to trigger excessive issue.
The real estate market has been doing rather well in the past couple of years and the above factors combine to make what some belief is a real estate bubble that makes sure to burst. Whether this real estate boom continues for a long time to come is something which remains to be seen. Nevertheless, the real estate market seems to be staying constant and while home rates might continue increasing supply is not surpassing demand and people keep buying. So, just the future will reveal when the real estate market starts decreasing.