There has been an increasing pattern in real estate purchases in the past couple of years. Houses have been offering like hotcakes, so to speak, and many have claimed that this real estate boom is far from being over. There are a couple of reasons that have been cited which give some insight into the existing real estate market and why real estate sales are not most likely to decrease for some time to come.
Remember we have offices in Collaroy Plateau, Wheeler Heights, Cromer, North Narrabeen, Collaroy, Elanora Heights, Narraweena, Dee Why, Oxford Falls, Warriewood and Narrabeen
Building Business Not Booming As Much As Real Estate Sales in Narrabeen
There are many reasons that the real estate market decreases. One such reason is due to an over-expansion of homes for sale. Although the house building business has been quite rewarding, it still has a ways to go in order to catch up with real estate sales. This is a good idea because there are not quite sufficient houses to fulfill 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 Sensible
While rate of interest have increased rather when compared to the past couple of years they are still fairly low and make many people wish to purchase a home. These appealing rates help keep the real estate market going because many individuals need loans to buy homes and low-interest rates make the total purchase more economical. So long as the rate of interest stay rather stable, prospective property buyers will still be revealing 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 variable-rate mortgages (ARMs), they may have fretted about the adjustable rate portion when their repaired 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 led to supporting the real estate market and has also drawn in individuals to buy a home through an ARM that has this new lengthier fixed-rate period.
Turning of Real Estate in NarrabeenNot As Widespread As It May Seem
Some individuals have been concerned that turning of real estate, which is the purchase and fast sale of the real estate thereafter, is something that might trigger the real estate bubble to burst. Nevertheless, those who have expressed issue can rest simple understanding that the portion increase with regard to turning from 1998 to 2003 is only 1%. When seeing the total scheme of things, a 1% increase within 5 years is not something that needs to trigger excessive issue.
The real estate market has been doing quite well in the past couple of years and the above aspects combine 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 remains to be seen. Nevertheless, the real estate market appears to be remaining stable and while house costs might continue going up supply is not outweighing need and individuals keep buying. So, only the future will reveal when the real estate market starts decreasing.