After doing some bike riding, I ran into my neighbor who works in the construction field. Jim is a successful home builder in the North Shore of Boston. While keeping our social distancing I asked him how his business was doing?
A Boston home builders outlook
With regard to the outlook, Jim the builder said he expects a decline in newly constructed real estate sales activity over the next three months relative to one year ago. Jim also expects declines in newly formed construction projects over the next three months relative to year-ago levels.
Lastly, a big question that seems to be on everyone’s mind is, “When will things return to normal?” Recognizing that this question is tough to answer with any degree of certainty, his best guess was 4 months until activity returns to “normal” levels.
Jim said his biggest concern now is how to sustain his business operations until he could seek out new sources of funding. Jim also added he could only operate for the next six months before he would need to seek out new funding sources, for example, govt grants, credit lines, or emergency loans.
Boston real estate and the bottom line
I’ll continue to keep an eye on the housing situation as it unfolds and report back periodically with updates. In the meantime, feel free to share your observations from your local market or questions you’d like to have answered by emailing me at firstname.lastname@example.org.