One of the more-accurate forecasters is predicting that home prices will start dropping:
Strong home purchase demand in the first quarter of 2020, coupled with tightening supply, has helped prop up home prices through the coronavirus (COVID-19) crisis. However, the anticipated impacts of the recession are beginning to appear across the housing market. Despite new contract signings rising year over year in May, home price growth is expected to stall in June and remain that way throughout the summer. CoreLogic HPI Forecast predicts a month-over-month price decrease of 0.1% in June and a year-over-year decline of 6.6% by May 2021.
Boston Condo Seller Beware: Unemployment
Unlike the Great Recession, the current economic downturn is not driven by the housing market, which continues to post gains in many parts of the country. While activity up until now suggests the housing market will eventually bounce back, the forecasted decline in home prices will largely be due to elevated unemployment rates. This prediction is exacerbated by the recent spike in COVID-19 cases across the country.
Don’t expect Boston condo prices to fall that quickly
As much as I respect Corelogic analysis. they are ignoring that for Boston condo prices to go down, we would need a huge increase of inventory – I don’t see that yet In addition, it would take realtors who recognize what’s needed, and be able to properly advise their sellers on lower pricing.
It ain’t going to happen. Not anytime soon.
Boston Real Estate for Sale and the Bottom Line
I’ve been wrong before making predictions. One thing is certain, Boston condo sales prices just don’t drop because of some bad news. Systematic changes need to occur in an orderly and timely manner.
First and foremost, Boston condos sales will slow, and Boston condo for sale inventory would need to increase. so keep an eye on those two items – next keep an eye on the local unemployment rate, but even if all that falls in place, it would take 1-2 years of stall out before sellers and agents start believing that they might not get their price.