This virus knows no borders and it is surprising how many people are still blogging that this is somehow not going to impact the Boston real estate market. Really?
No one could have predicted it. Not the economists, not the Boston real estate agents, and especially not the nation’s home builders. But a pandemic caused an emotional run on housing unlike any other.
Now, one year after the Covid-19 crisis shut down and warped so much of American life, things are still unpredictable, but how will this impact the downtown Boston condo market? I think we’re going to see a correction In fact, it looks like the perfect storm for a correction.
A year ago, home sales ground to a halt. No one wanted to buy or sell or even enter a home, given all the physical and economic uncertainty that Covid-19 brought. But just a few months later, housing hit the gas pedal, and prices followed.
The frenzy was hugely emotional, as the nation saw most aspects of daily life suddenly confined to its properties. Space became a major asset. It was also fueled by very attractive mortgage rates, which set more than a dozen record lows.
To assume the Federal Reserve is going to have the power to generate demand for downtown Boston condos for sale with low-interest rates is a stretch. Boston real estate brokers like me, who can we sell to? The Fed has aggressively cut rates, but if you are out of a job or if the economy is in a shut-down mode, who’s buying? Think about it, Gov. Baker doesn’t want you to go to work, filings for unemployment in Massachusetts is still high, although going in the right direction of late. Yet somehow this weak recovery isn’t going to impact housing? Once again, Really?
To think that “housing only goes up” and forget that real workers need to earn real money and stay healthy is a fallacy. For all my Boston real estate broker friends, say what you want, but the truth is…. we are in for a correction here. However, I do firmly believe the Boston condo correction will be short-lived and the fundamentals were very strong before the virus outbreak.
Hopefully, the govt will remain focus on getting this virus under control