Boston real estate outlook
The Boston Business Journal interviewed economist Karl ‘Chip’ Case on a range of issues. The following excerpts are Karl Case’s thoughts on the U.S. housing market:
‘I’m not real optimistic’
It’s nearly impossible to meet with Case and not somehow discuss the housing market. The subject of wine is a close second, in terms of his order of interests, but house talk truly gets his blood pumping. It’s what he knows best.
In July, lounging in a pair of athletic shorts and a “Wicked Sox Fan” T-shirt, Case said he was less than thrilled with what he was seeing. That outlook hasn’t changed in the months since. “I’m not real optimistic,” he said, noting that the market’s three most relevant measuring sticks — vacancy rates, household formations and new-home building — remain at distressing levels. He waved a hand at the monthly pricing and sales-volume reports that grab most of the headlines.
Case said Shiller deserves much of the credit for calling the housing bubble and its subsequent deflation. He avoids making forecasts whenever possible. “That’s what people are always looking for and I suppose I’m as qualified as anyone to offer one. But it doesn’t mean anything’s bound to turn out the way I’ve predicted.”
Read more: The Housing Oracle | Boston Business Journal