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 numerous have declared 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 likely to decrease for some time to come.
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Structure Business Not Booming As Much As Real Estate Sales in West Wollongong
There are numerous reasons that the real estate market slows down. One such reason is because of an over-expansion of homes for sale. Although the house structure business has been quite profitable, it still has a ways to go in order to catch up with real estate sales. This is a good idea because there are not quite enough homes to fulfill the current need which will keep the marketplace expanding for some time. So long as the supply doesn’t swallow the need, the real estate market will continue to prosper.
Interest Rates Remain Reasonable
While rate of interest have increased rather when compared to the previous couple of years they are still relatively low and make lots of people want to purchase a house. These attractive rates help keep the real estate market going because most individuals need loans to purchase homes and low-interest rates make the overall purchase less expensive. So long as the rate of interest stay rather stable, prospective property buyers will still be revealing terrific interest in the purchase of a house 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 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 resulted in supporting the real estate market and has likewise drawn in individuals to purchase a house through an ARM that has this new lengthier fixed-rate duration.
Turning of Real Estate in West WollongongNot As Common 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 afterwards, is something that may trigger the real estate bubble to burst. However, those who have expressed concern can rest easy knowing that the percentage boost with regard to flipping from 1998 to 2003 is only 1%. When viewing the overall scheme of things, a 1% boost within 5 years is not something that needs to trigger too much concern.
The real estate market has been doing quite well in the previous couple of years and the above factors integrate to make what some belief is a real estate bubble that makes certain 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 constant and while house rates may continue going up supply is not outweighing need and individuals keep buying. So, only the future will show when the real estate market begins slowing down.