And, Boston is on the list (natch.). So is Barnstable town(?), Cambridge, and Essex.
You’ve heard it all before.
[Mark Zandi, chief economist for Moody’s Economy.com] … pointed out that there were still reasons to be wary of a potentially more severe slowdown here in the unlikely event that the general economy begins to falter. “Housings tentacles go deep into the economy, he said, deeper than many people think.
Zandi also noted that housings high sensitivity to shifts in interest rates will become increasingly apparent the longer the Federal Reserve continues driving up those rates by quarter-point increments. “Any fundamental rise in interest rates will bite hard, Zandi said, and the rise will lock out two key groups that are important to local and regional markets: first-time home buyers and investors.
Investors have something valuable to contribute to the long-term vitality of local markets because they arent just buyers whose aim is to flip and get out,� but include second home buyers, boomers seeking retirement homes and others who are in it for the long haul.
Another cause for concern, Zandi pointed out that there are a substantial number of borrowers at risk of defaulting on mortgages that are for amounts exceeding the value of their homes. We will see defaulting and foreclosures, he said.
Complete story: Miami Could Be the First Hot Market to Land With a Thump – Nation’s Building News Online
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Updated: January 2018
