No, they don’t.
At least, according to this consultant’s study of Manhattan’s housing prices over the past thirty years.
The 30 years of Manhattan data provided an interesting data set to study real estate prices. We looked at the relationship between 30-year mortgage rates and the average price of a Manhattan apartment over this 30 year period in the hopes of showing a relationship between the two quantities.
The data did not support the usual claim that rising interest rates causes a decrease in market prices, and dropping interest rates causes an increase in market prices.
I am very, very surprised. I thought that any increase in interest rates would directly lead to a drop in housing prices. And, conversely, I always believed that the increase in housing prices was due to low interest rates.
That’s just not true, I guess.
Two other pieces of information from his study. First, homes (at least in Manhattan) are still not as expensive as they were in the mid-80’s (adjusted for inflation). Second, home prices in Manhattan went down following 9/11, and are still lower, on average, than before then, even though mortgage loan rates fell at least 2% during that time.
Yes, it’s about Manhattan real estate. It’s probably just as true, here.
More details: Are Real Estate Prices Dependent on Mortgage Rates? An article by Lucas Finco
I am a real estate agent and broker. I feel the need to state that, because I think some people assume I just do this for kicks. Um, no.
The difference between an agent and a broker is a broker can open his or her own agency, while an agent has to work for someone else. A broker takes extra classes and passes a separate exam in order to qualify for the broker’s license. Plus you have to have been an active agent for at least one year.
Anyway, so I have my own company. Ford Realty Inc. Ugh. Boring. Plus, when I call to set up appointments with other agents, they ask for the name of my company, I tell them and they sort of chuckle and say, oh, how quaint. Guess it doesn’t sound successful or professional enough. Plus, as I get more successful, and bring on employees (mm-hmm) it might be better to be less egocentric.
So, what do you think? Should I pick a name that sounds big and impressive? Like Giant Real Estate, or something descriptive like Boston’s Bestest Real Estate, or should I stick with using my name (it worked for Mr Coldwell and Mr Banker).
Submit suggestions through the comments form below. Feel free to be snarky or helpful.
Contact me to find to set up an appointment to start your Boston condo buying process.
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