There has been an increasing trend in real estate purchases in the past few years. Houses have been selling like hotcakes, so to speak, and many have declared 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 a long time to come.
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Building Business Not Growing As Much As Real Estate Sales in Oatley
There are many reasons that the real estate market decreases. One such reason is due to an over-expansion of houses for sale. Although the house structure business has been quite successful, it still has a ways to enter order to overtake real estate sales. This is an advantage because there are not quite enough homes to meet the existing need which will keep the market growing for a long time. So long as the supply doesn’t swallow the need, the real estate market will continue to succeed.
Rates Of Interest Remain Reasonable
While rate of interest have increased somewhat when compared to the past couple of years they are still relatively low and make many individuals want to buy a home. These appealing rates help keep the real estate market going because many people need loans to acquire houses and low-interest rates make the general purchase cheaper. So long as the rate of interest remain somewhat stable, potential property buyers will still be revealing terrific 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 stressed over the adjustable rate part when their fixed rate part was diminished. 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 attracted people to acquire a home through an ARM that has this new lengthier fixed-rate period.
Turning of Real Estate in OatleyNot As Widespread As It Might Seem
Some people have been worried that turning of real estate, which is the purchase and quick sale of the real estate afterwards, is something that may cause the real estate bubble to burst. However, those who have expressed issue can rest easy knowing that the percentage increase with regard to turning from 1998 to 2003 is only 1%. When viewing the general plan of things, a 1% increase within 5 years is not something that should cause too much issue.
The real estate market has been doing quite well in the past few years and the above aspects integrate to make what some belief is a real estate bubble that makes sure to burst. Whether this real estate boom continues for a long period of time to come is something which stays to be seen. However, the real estate market seems to be remaining steady and while house prices may continue going up supply is not exceeding need and individuals keep purchasing. So, only the future will reveal when the real estate market begins decreasing.