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 few reasons that have been cited which give some insight into the current real estate market and why real estate sales are not most likely to decrease for some time to come.
Remember we have offices in Agnes Banks, Hobartville, Clarendon, Bligh Park, Richmond, Castlereagh, Berkshire Park, Yarramundi, Grose Wold, Windsor Downs and Londonderry
Structure Business Not Growing As Much As Real Estate Sales in Londonderry
There are many reasons why the real estate market decreases. One such reason is because of an over-expansion of houses for sale. Although the home building business has been quite lucrative, it still has a ways to enter order to catch up with real estate sales. This is an advantage because there are not quite enough homes to meet the current demand and that will keep the marketplace expanding for some time. So long as the supply doesn’t swallow the demand, the real estate market will continue to succeed.
Rate Of Interest Remain Affordable
While rate of interest have increased somewhat when compared to the past couple of years they are still reasonably low and make many individuals want to buy a house. These attractive rates assist keep the real estate market going because many individuals need loans to purchase houses and low-interest rates make the general purchase less costly. So long as the rate of interest remain somewhat steady, prospective homebuyers will still be revealing excellent interest in the purchase of a house 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 stressed over the adjustable rate portion when their fixed rate portion was depleted. 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 caused stabilizing the real estate market and has also attracted individuals to purchase a house via an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in LondonderryNot As Widespread As It May Seem
Some individuals have been worried that flipping of real estate, which is the purchase and quick sale of the real estate thereafter, is something that may trigger the real estate bubble to burst. However, those who have revealed issue can rest simple knowing that the portion boost with regard to flipping from 1998 to 2003 is just 1%. When seeing the general scheme of things, a 1% boost within 5 years is not something that must trigger excessive issue.
The real estate market has been doing quite well in the past couple of years and the above elements integrate to make what some belief is a real estate bubble that makes certain to burst. Whether this real estate boom continues for a very long time to come is something which stays to be seen. However, the real estate market seems to be remaining constant and while home costs may continue going up supply is not surpassing demand and people keep buying. So, just the future will reveal when the real estate market begins decreasing.