There has been an increasing pattern in real estate purchases in the past couple of years. Houses have been selling like hotcakes, so to speak, and numerous 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 likely to reduce for some time to come.
Remember we have offices in Wendoree Park, Marlow, Mount White, Glenworth Valley, Lower Mangrove, Bar Point, Singletons Mill, Milsons Passage, Cheero Point, Gunderman and Spencer
Building Business Not Growing As Much As Real Estate Sales in Spencer
There are numerous reasons why the real estate market slows down. One such reason is due to an over-expansion of houses for sale. Although the home building business has been rather lucrative, it still has a ways to go in order to catch up with real estate sales. This is an advantage because there are not rather sufficient homes to fulfill 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 Remain Reasonable
While rate of interest have increased somewhat when compared to the past couple of years they are still fairly low and make many people wish to purchase a house. These attractive rates assist keep the real estate market going because most people need loans to purchase houses and low-interest rates make the total purchase less expensive. So long as the rate of interest stay somewhat steady, potential homebuyers will still be expressing fantastic interest in the purchase of a house simply because low-interest rates make the investment more cost effective.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have adjustable-rate mortgages (ARMs), they may have fretted 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 led to stabilizing the real estate market and has likewise brought in people to purchase a house by means of an ARM that has this new lengthier fixed-rate duration.
Flipping of Real Estate in SpencerNot As Prevalent As It May Seem
Some people have been concerned that turning of real estate, which is the purchase and fast sale of the real estate afterwards, is something that might cause the real estate bubble to burst. However, those who have revealed concern can rest simple understanding that the percentage increase with regard to turning from 1998 to 2003 is only 1%. When viewing the total scheme of things, a 1% increase within 5 years is not something that needs to cause excessive concern.
The real estate market has been doing rather well in the past couple of years and the above aspects integrate 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 remains to be seen. However, the real estate market seems to be remaining stable and while home costs might continue going up supply is not outweighing need and people keep buying. So, only the future will reveal when the real estate market begins slowing down.