There has been an increasing trend in real estate purchases in the previous few years. Homes have been selling 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 mentioned 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.
Remember we have offices in Birrong, Regents Park, Chullora, Yagoona, Sefton, Berala, Greenacre, Bankstown, Mount Lewis, Chester Hill and Potts Hill
Structure Business Not Thriving As Much As Real Estate Sales in Potts Hill
There are lots of reasons 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 quite successful, 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 quite enough houses 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.
Rate Of Interest Stay Affordable
While rates of interest have increased somewhat when compared with 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 a lot of individuals need loans to buy houses and low-interest rates make the overall purchase more economical. So long as the rates of interest remain somewhat steady, potential homebuyers will still be revealing terrific 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 worried about the adjustable rate portion when their repaired 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 led to stabilizing the real estate market and has likewise attracted individuals to buy a home through an ARM that has this new lengthier fixed-rate duration.
Flipping of Real Estate in Potts HillNot As Prevalent As It Might Seem
Some individuals have been concerned that flipping of real estate, which is the purchase and quick sale of the real estate thereafter, is something that might cause the real estate bubble to burst. Nevertheless, those who have revealed concern can rest easy understanding that the portion boost with regard to flipping from 1998 to 2003 is just 1%. When seeing the overall scheme of things, a 1% boost within 5 years is not something that should cause excessive concern.
The real estate market has been doing quite well in the previous few years and the above aspects combine 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 remains to be seen. Nevertheless, the real estate market appears to be staying constant and while house rates might continue going up supply is not surpassing need and individuals keep purchasing. So, just the future will show when the real estate market starts decreasing.