There has been an increasing pattern in real estate purchases in the past few years. Homes 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 pointed out which give some insight into the current real estate market and why real estate sales are not likely to decrease for a long time to come.
Remember we have offices in Longueville, Northwood, Greenwich, Hunters Hill, Birchgrove, Riverview, Wollstonecraft, Balmain, Waverton, Drummoyne and Woolwich
Structure Business Not Flourishing As Much As Real Estate Sales in Woolwich
There are numerous reasons why the real estate market decreases. One such reason is because of an over-expansion of houses for sale. Although the home building business has been rather rewarding, it still has a ways to enter order to catch up with real estate sales. This is an advantage because there are not rather sufficient homes to meet the current demand and that will keep the market booming for a long time. So long as the supply does not swallow the demand, the real estate market will continue to prosper.
Rates Of Interest Stay Reasonable
While interest rates have increased somewhat when compared with the past couple of years they are still fairly low and make many people wish to buy a home. These attractive rates help keep the real estate market going because many individuals need loans to purchase houses and low-interest rates make the overall purchase cheaper. So long as the interest rates remain somewhat steady, potential homebuyers will still be revealing excellent 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 adjustable-rate mortgages (ARMs), they may have fretted about the adjustable rate portion when their fixed rate portion was diminished. Just 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 stabilizing the real estate market and has also brought in individuals to purchase a home through an ARM that has this new lengthier fixed-rate period.
Flipping of Real Estate in WoolwichNot As Prevalent As It May Seem
Some individuals have been worried that flipping 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 simple knowing that the percentage increase with regard to flipping from 1998 to 2003 is only 1%. When seeing the overall scheme of things, a 1% increase within 5 years is not something that must cause too much issue.
The real estate market has been doing rather well in the past few years and the above factors combine to make what some belief is a real estate bubble that makes sure 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 seems to be staying steady and while home prices might continue increasing supply is not exceeding demand and individuals keep buying. So, only the future will show when the real estate market begins decreasing.