There has been an increasing trend in real estate purchases in the previous few years. Houses have been offering like hotcakes, so to speak, and lots of 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 a long time to come.
Remember we have offices in Punchbowl, Bankstown, Greenacre, Wiley Park, Yagoona, Lakemba, Chullora, Roselands, Potts Hill, Condell Park and Mount Lewis
Structure Business Not Growing As Much As Real Estate Sales in Mount Lewis
There are lots of reasons why the real estate market decreases. One such reason is because of an over-expansion of homes for sale. Although the house building business has been quite successful, it still has a ways to enter order to overtake real estate sales. This is a good thing because there are not quite sufficient homes to satisfy the current need which will keep the market booming for a long time. So long as the supply doesn’t swallow the need, the real estate market will continue to flourish.
Rate Of Interest Stay Affordable
While interest rates have increased somewhat when compared with the previous couple of years they are still reasonably low and make many individuals want to buy a home. These appealing rates assist keep the real estate market going because many people need loans to buy homes and low-interest rates make the general purchase less costly. So long as the interest rates stay somewhat stable, prospective homebuyers will still be expressing great interest in the purchase of a home simply because low-interest rates make the investment more cost effective.
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 portion when their fixed 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 also brought in people to buy a home via an ARM that has this new lengthier fixed-rate duration.
Turning of Real Estate in Mount LewisNot As Prevalent As It Might Seem
Some people have been concerned that turning 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. Nevertheless, those who have expressed issue can rest simple knowing that the percentage boost with regard to turning from 1998 to 2003 is just 1%. When seeing the general scheme of things, a 1% boost within 5 years is not something that should trigger too much issue.
The real estate market has been doing quite well in the previous few 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 appears to be staying constant and while house prices may continue going up supply is not exceeding need and people keep purchasing. So, just the future will reveal when the real estate market starts slowing down.