Case Shiller reported that home real estate price gains were strong in January.
Our Boston real estate market was strong in January with low mortgage rates, low Boston condo for sale inventory coupled with a tight labor market, but that was before the coronavirus hit our local real estate market.
Now there are forecasts that home values will weaken significantly across the country.
“Housing prices were particularly strong in the West and South, and comparatively weak in the Midwest and Northeast.”
“We expect a peak-to-trough fall in prices of around 4% by early 2021, with values then flattening out for the rest of the year,” wrote Matthew Pointon, an economist with Capital Economics. “Housing demand will see a sharp decline as unemployment hits record highs, and households are prevented from buying a home due to the shut down of large parts of the economy.”
Pointon says the risk to housing will rise, so buyers’ willingness to pay for a home will fall, and house price expectations will take a hit.
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