There has been an increasing pattern in real estate purchases in the previous few years. Homes 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 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 reduce for some time to come.
Remember we have offices in Elizabeth Bay, Woolloomooloo, Rushcutters Bay, Darling Point, Darlinghurst, Edgecliff, Sydney, Paddington, The Rocks, Double Bay and Potts Point
Building Business Not Booming As Much As Real Estate Sales in Potts Point
There are lots of reasons why the real estate market slows down. One such reason is due to an over-expansion of homes for sale. Although the house building business has been quite lucrative, it still has a methods to go in order to overtake real estate sales. This is a good thing because there are not quite enough homes to satisfy the existing need which will keep the market booming for some time. So long as the supply doesn’t swallow the need, the real estate market will continue to flourish.
Interest Rates Stay Affordable
While interest rates have increased somewhat when compared to the previous 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 purchase homes and low-interest rates make the general purchase less expensive. So long as the interest rates remain somewhat steady, prospective homebuyers 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 might have worried about the adjustable rate part when their repaired rate part was diminished. Just 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 likewise attracted individuals to purchase a home via an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in Potts PointNot As Common 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 cause the real estate bubble to burst. However, those who have revealed issue can rest easy knowing that the portion boost with regard to turning from 1998 to 2003 is just 1%. When seeing the general plan of things, a 1% boost within 5 years is not something that must cause excessive issue.
The real estate market has been doing quite well in the previous few years and the above factors 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 period of time to come is something which stays to be seen. However, the real estate market appears to be remaining steady and while house rates might continue going up supply is not surpassing need and people keep purchasing. So, just the future will reveal when the real estate market begins decreasing.