There has been an increasing pattern in real estate purchases in the past couple of 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 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 Warrawee, Pymble, South Turramurra, Wahroonga, St Ives, North Turramurra, West Pymble, Gordon, Normanhurst, North Wahroonga and Turramurra
Building Business Not Thriving As Much As Real Estate Sales in Turramurra
There are lots of reasons that the real estate market slows down. One such reason is because of 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 adequate houses to meet the current need which will keep the marketplace booming for some time. So long as the supply does not swallow the need, the real estate market will continue to prosper.
Rates Of Interest Remain Reasonable
While interest rates have increased rather when compared with the past couple of years they are still fairly low and make many people wish to purchase a home. These attractive rates assist keep the real estate market going because a lot of individuals need loans to buy homes and low-interest rates make the general purchase less expensive. So long as the interest rates remain rather steady, prospective property buyers will still be revealing great interest in the purchase of a home simply because low-interest rates make the investment more cost effective.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have variable-rate mortgages (ARMs), they might have fretted about the adjustable rate portion when their repaired rate portion was depleted. 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 resulted in supporting the real estate market and has also drawn in individuals to buy a home by means of an ARM that has this new lengthier fixed-rate duration.
Turning of Real Estate in TurramurraNot As Widespread As It Might Seem
Some individuals have been worried that turning of real estate, which is the purchase and quick sale of the real estate afterwards, is something that might trigger the real estate bubble to burst. However, those who have expressed concern can rest easy knowing that the percentage increase with regard to turning from 1998 to 2003 is just 1%. When seeing the general scheme of things, a 1% increase within 5 years is not something that needs to trigger excessive concern.
The real estate market has been doing quite well in the past couple of years and the above elements combine 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 remains to be seen. However, the real estate market appears to be staying steady and while house rates might continue increasing supply is not surpassing need and people keep buying. So, just the future will show when the real estate market starts decreasing.