Are we heading towards a Boston condo slowdown?

Single-family housing authorizations decreased for the second-consecutive month in December, according to BuildFax’s Housing Health Report. From November to December 2018, BuildFax noted a 0.95% decrease in single-family housing authorizations, and year-over-year, there was a 3.76% decrease. This is notable because single-family housing authorizations are highly predictive of recessions, said Holly Tachovsky, CEO of BuildFax.

“The potential for an economic downturn has been discussed over the past few months as more signals of a recession come into alignment,” said Tachovsky. “We’ve been tracking single-family housing authorizations daily for a more granular understanding of whether a decline might be on the horizon,” she added, noting that BuildFax has also been monitoring interest rates and changes in home prices and inventory.

The trailing three-month outlook on single-family housing authorizations has the highest correlation to signals of a possible economic downturn, and with the 1.22% decrease among other housing activity declines, it’s a sign worth monitoring. In other words, it’s still too soon to know.

Construction activity informs economic health analyses, Buildfax COO Jonathan Kanarek explains.

“National construction activity has been and will continue to be a go-to indicator for economic health,” say Kanarek. “The health of the housing market is two-fold. Of course, it’s important to see the growth of new construction as a critical indicator of economic health, but remodeling and maintenance specifically measures the health of the existing housing stock and consumer confidence.

Property owners are disinclined to start a remodeling project, which is often a substantial undertaking, if there’s anxiety in the market, low consumer confidence, or decreased access to capital. And structures that do not see regular maintenance activity will become greater risks, leading to a higher propensity for damage in the face of convective storms or natural disasters. These factors together (new building, remodeling and maintenance) provide a comprehensive picture of the health of U.S. housing stock.”

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Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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