There has been an increasing trend in real estate purchases in the past few years. Homes have been offering like hotcakes, so to speak, and lots of have claimed 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 likely to reduce for a long time to come.
Remember we have offices in Willoughby East, Willoughby, Middle Cove, Castle Cove, Castlecrag, Chatswood, Northbridge, Artarmon, Roseville Chase, Naremburn and North Willoughby
Building Business Not Booming As Much As Real Estate Sales in North Willoughby
There are lots of reasons the real estate market decreases. One such reason is because of an over-expansion of homes for sale. Although the home building business has been quite successful, it still has a methods to enter order to catch up with real estate sales. This is an advantage because there are not quite sufficient houses to meet the current demand and that will keep the market expanding for a long 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 interest rates have increased somewhat when compared with the past number of years they are still fairly low and make many individuals want to buy a home. These attractive rates assist keep the real estate market going because the majority of people need loans to acquire homes and low-interest rates make the total purchase less expensive. So long as the interest rates stay somewhat stable, potential property buyers will still be expressing excellent 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 might have fretted about the adjustable rate part when their fixed rate part was depleted. Recently the fixed-rate part of the ARM has been increasing with regard to the length of years in which it is active. This has resulted in supporting the real estate market and has also drawn in people to acquire a home by means of an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in North WilloughbyNot As Common As It Might Seem
Some people have been concerned that flipping 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. However, those who have expressed concern can rest simple understanding that the percentage increase with regard to flipping from 1998 to 2003 is just 1%. When seeing the total scheme of things, a 1% increase within 5 years is not something that ought to trigger too much concern.
The real estate market has been doing quite well in the past few years and the above elements 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 stays to be seen. However, the real estate market seems to be remaining steady and while home prices might continue going up supply is not exceeding demand and people keep purchasing. So, just the future will show when the real estate market starts slowing down.