growth in us home prices and household incomes

Boston real estate prices and income

One metric that  could be a sign of trouble for the Boston real estate market is the gap between the rising Boston condos for sale prices and household income—as shown in the left-hand shaded circle above. When income can’t keep pace with Boston real estate prices, the latter must come down. Over leveraged Boston condo “owners” default on their mortgages, creating a housing glut that drags prices down further. 

So when trying to gauge when the current Boston real estate expansion might come to an end, it is worth keeping an eye on the gap between home prices and income. 

The good news the fed’s downward pressure on interest rates is keeping this Boston real estate expansion chugging right along, However, I’m a little concerned about the 2020 Presidential Election and how the markets will react as we head into the new year with the uncertainty who our next President will be.

File Under: Something to think about

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