Boston Seaport condo market is healthy, little risk of bubble

Are we in a Boston condo for sale housing bubble? It’s a question I’m often asked with Boston downtown condo prices rising and a brisk housing market continuing here in Bosotn. And more importantly, if we are in a bubble, when is it going to pop? The short answer is ‘no,’ we’re not in a bubble. A while ago, I ran across a very interesting report regarding the housing market published by CoreLogic. The article discusses exactly how ‘risk’ of a bubble is measured in the housing market and using their risk factors, I can again say that ‘no’ we are not likely in a Boston condo bubble here in the Boston condo market. And in fact, the article says that the majority of markets in the U.S. are healthy and have relatively low risk. But how do they know?

First – The Boston economy

The analysts look at home prices (such as Boston Seaport District) and whether the trend of prices is long-term sustainable by the local economy, specifically household incomes. The vast majority of citizens budget a big chunk of their monthly income for housing costs – whether they’re renting or own – so as incomes go up, there’s room for housing appreciation as well. However, risk can increase if this balance between incomes and housing costs gets way out of whack. Fortunately in Boston our incomes and job growth are steadily increasing. This is good news for those thinking of buying in the new Boston Seaport District.

Second – Rent vs Owning a Boston condo

Risk is determined by the relationship between the appreciation of home prices and costs to rent. If home prices and rents vary too widely, then you’ll know a correction is on the horizon, because a large difference between the two is not sustainable for the long term. Think of it this way, if home prices increase so greatly that more people would prefer to rent then eventually home prices will have to come down to satisfy what the market demands – more affordable homes.

Third – Boston condo flipping

The CoreLogic analysts look at the number of homes being flipped. If there’s a higher than normal rate of flipping and speculative investment it can falsely inflate housing prices and increase the risk of a bubble.

Fourth, Boston condo mortgage fraud

They also look at mortgage fraud numbers and an unusually high number of mortgage fraud can also signal higher risk for a bubble.

Conclusion

So, as far as the Boston Seaport condo market goes, our risk is low now by all of these measures. In fact, I’m seeing our market tapering off from the frenzied buying season of the past and as I talk to investors they tell me our economy is in good shape with incomes rising and job growth continuing.

If you have been considering selling your Boston Seaport condo, keep in mind that Spring is a great time to list. Please contact me today to find out what your Boston downtown condo is worth and we can talk strategy. I’d love to help you sell your current Boston Seaport condo and find a new one, right here in Boston

Boston Seaport condos for sale


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Boston Seaport Condos for Sale under $1M

View Boston Seaport District condos for sale under $1M

Unlike other Boston condo brokers we give back 50% of our portion of the commission to YOU the buyer.


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Boston Seaport Condos for Sale under $2M

View Boston Seaport District condos for sale under $1M

Unlike other Boston condo brokers we give back 50% of our portion of the commission to YOU the buyer.


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Boston Seaport Condos for Sale


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Boston Seaport Condos for Rent


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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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