There has been an increasing trend in real estate purchases in the previous couple of years. Houses 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 couple of reasons that have been mentioned which give some insight into the current real estate market and why real estate sales are not most likely to decrease for some time to come.
Remember we have offices in Colebee, Dean Park, Marayong, Glendenning, Kings Park, Woodcroft, Acacia Gardens, Parklea, The Ponds, Schofields and Quakers Hill
Building Business Not Booming As Much As Real Estate Sales in Quakers Hill
There are lots of 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 rewarding, it still has a ways to enter order to overtake real estate sales. This is a good thing because there are not quite adequate homes to meet the current 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 succeed.
Rate Of Interest Remain Affordable
While rates of interest have increased rather when compared to the previous couple of years they are still fairly low and make many individuals want to purchase a house. These attractive rates help keep the real estate market going because a lot of people need loans to acquire houses and low-interest rates make the overall purchase cheaper. So long as the rates of interest stay rather steady, prospective property buyers will still be expressing excellent interest in the purchase of a house simply because low-interest rates make the investment more affordable.
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 repaired 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 led to stabilizing the real estate market and has likewise brought in people to acquire a house through an ARM that has this new lengthier fixed-rate duration.
Flipping of Real Estate in Quakers HillNot As Widespread As It May Seem
Some people have been worried that flipping of real estate, which is the purchase and quick sale of the real estate thereafter, is something that might trigger the real estate bubble to burst. However, those who have revealed issue can rest easy knowing that the percentage boost with regard to flipping from 1998 to 2003 is just 1%. When viewing the overall scheme of things, a 1% boost within 5 years is not something that must trigger excessive issue.
The real estate market has been doing quite well in the previous couple of 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 appears to be remaining constant and while house rates might continue increasing supply is not exceeding need and individuals keep buying. So, just the future will reveal when the real estate market begins slowing down.