Comments on: Boston single-family home prices

By: Rich

Rich — Mon, 09 Nov 2009 21:23:12 +0000

In 1988, a fixed rate 30-year mortgage was going for 10.5%. In 1998, the same mortgage was going for around 7%. No wonder there was a recovery from the late ’80s real estate bubble.

However, today we face the opposite situation. The U.S. government is artificially keeping mortgage rates very low (around 5%) to keep the real estate afloat. They can’t do this forever. Mortgage rates will have to go up at some point. When they do, prices will go down again.

By: WTF

WTF — Mon, 09 Nov 2009 18:03:05 +0000

Jimmy H, I agree with you these assumptions are a joke.

By: Jimmy H

Jimmy H — Mon, 09 Nov 2009 17:14:43 +0000

I find that assumption totally inaccurate. What basis does that have? It should say that the Greater Boston housing bubble began to inflate in 1998, and reached its peak in 2005.
Prices tend to deflate as rapidly as they increased during a bubble, so we will see a bottom in Boston-area housing around 2013-2014.