A new report out today predicts Boston (actually, Massachusetts) may face a worse housing market next year. The findings contradict what other experts have been predicting.
Some economists feel as though Boston may have seen most of its damage, already. Prices have dropped an average of 2-3%, in the state, during 2006.
(This is for homes and condos; single-family homes have dropped in the 5%range, in the state.)
According to the New England Economic Partnership (CRAP), housing prices will drop by as much as 10% from 2005 prices, but won’t bottom until early
2008. Prices will remain flat through 2009, before beginning to climb, gradually.
I tend to believe this is a worst-case scenario, seeing as we have a healthy economy (4.6% unemployment rate?), low-interest rates (sub-5% fixed-rate
mortgages?), and a leveling off in inventory. I have read a lot of economists’ reports, which has led me to this belief.
I have to say, unless I’m reading it wrong, this is simply the stupidest statement of the year:
During this recent housing boom, the gap between income and home prices reached an all-time high, exceeding the gap of the late 1980s, the last time
a boom turned to bust, Clayton-Matthews said. The implication, either on the part of the study’s author, or the newspaper
reporters covering it, is that people can’t afford to buy a home because its list price is too high.
That’s stupid. People buy based on monthly payments, not on the list price. Yes, the gap is the largest it has been, but in 1989 the mortgage loan
interest rate was %. Today, it’s around 6%. Home prices are irrelevant in this regard.
More: Housing slide may deepen – By Robert Gavin, The Boston
Globe
Also: Home prices to reel? Study sees 10 percent drop – By Jay Fitzgerald,
The Boston Herald
Sorry we are experiencing system issues. Please try again.
Click Here: Back to Boston Real Estate Home Search
Buying a Boston Real Estate for sale
- Tips on buying a Boston real estate
- Boston real estate buyers how to beat all-cash offers
- 5 tips on buying a Boston real estate for sale
- Benefits of buying a Boston real estate condo
- Design tips for Beacon Hill condo buyers
- Boston Beacon Hill condos for sale 5 must-know terms
- The difference between a Beacon Hill condos and a Beacon Hill loft
- Common mistakes when buying a Beacon Hill condo
- Buying a Beacon Hill condo with kids
- Is it time to ditch my Beacon Hill condo agent?
- Beacon Hill condos for sale: Do I need 20% down?
- 3 signs you’re going to buy a Boston Beacon Hill condo
- 6 principles to know when buying a Beacon Hill condo
- How to select a Boston Beacon Hill condo agent
- Boston Beacon Hill condos for sale downpayment
- Boston Beacon Hill condos finance
- Beacon Hill condos for sale what is negotiable
- Beacon Hill condos for sale: What it takes to get a mortgage.
- Boston Beacon Hill condos for sale. Understand the condo association
- How much do Boston Beacon Hill condos cost?
- How to select a Boston real estate broker
- Beacon Hill condos for sale: Clutter-Free
- Beacon Hill condos for sale: Security Tips
- Beacon Hill condo renters are misinformed
- Boston Beacon Hill condos for sale: Design trends
- Boston Boston real estate: Fixer up
- 8 Beacon Hill condo designs
- How to sell your Midtown condo using social media
- Boston Boston real estate sales volume
- Wage increases make Boston real estate less or more affordable
- Boston Boston condos the importance of high owner occupancy
- Why you should buy a Boston real estate offseason
- The definitions of Boston real estate terms and what they mean?
- UPDATED 2020