There has been an increasing pattern in real estate purchases in the previous couple of years. Houses have been selling like hotcakes, so to speak, and many have claimed that this real estate boom is far from being over. There are a few reasons that have been mentioned which give some insight into the current real estate market and why real estate sales are not likely to reduce for some time to come.
Remember we have offices in Picton, Tahmoor, Thirlmere, Pheasants Nest, Razorback, Douglas Park, Wilton, Mowbray Park, Couridjah, Lakesland and Maldon
Structure Business Not Growing As Much As Real Estate Sales in Maldon
There are many reasons why the real estate market slows down. One such reason is because of an over-expansion of houses for sale. Although the house building business has been rather rewarding, it still has a ways to go in order to catch up with real estate sales. This is a good thing because there are not rather sufficient homes to fulfill the current need which 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 succeed.
Rate Of Interest Stay Affordable
While rate of interest have increased rather when compared to the previous number of years they are still fairly low and make many individuals want to purchase a home. These appealing rates help keep the real estate market going because many people need loans to buy houses and low-interest rates make the general purchase less costly. So long as the rate of interest remain rather stable, potential property buyers will still be expressing great interest in the purchase of a home simply because low-interest rates make the investment more affordable.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have adjustable-rate mortgages (ARMs), they may have worried 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 caused stabilizing the real estate market and has likewise attracted people to buy a home through an ARM that has this new lengthier fixed-rate duration.
Turning of Real Estate in MaldonNot As Widespread As It May Seem
Some people have been worried that turning of real estate, which is the purchase and fast sale of the real estate afterwards, is something that may cause the real estate bubble to burst. Nevertheless, those who have expressed issue can rest easy knowing that the portion boost with regard to turning from 1998 to 2003 is just 1%. When viewing the general scheme 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 rather well in the previous couple of 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 long time to come is something which remains to be seen. Nevertheless, the real estate market seems to be remaining constant and while house prices may continue going up supply is not outweighing need and individuals keep buying. So, just the future will reveal when the real estate market starts decreasing.