The big news over the past two days has been the Fed’s comments (well, Boston Fed President Cathy Minehan’s comments) on the state of the Boston real estate market.
Apparently, things are bad. Of course, not so bad that prices have gone down, at all. In fact, prices are predicted to rise, this year, by 6 percent, which is certainly greater than the usual 12% gain we’ve experienced over the past several years.
More disturbing for us all is the federal deficit. It’s draining money from our economy, and raising interest rates. So, housing will cost more in the future, as will your mortgage loan.
A strengthening economy should bolster the nation’s housing markets and prevent US and New England home prices from declining in coming months, two top economists told a conference of real estate agents yesterday.
Minehan agreed that New England prices would not plunge in this housing cycle. Recent price appreciation here has been greater than the rest of the nation, she said. But unlike in the ’80s, ”there has been little speculative building,” she said.
Minehan: Housing prices not set to fall: Employment growth to bolster market, economists predict – By Kimberly Blanton, The Boston Globe