It is hard to get through a day without joining a virtual class, presentation, or meeting. Yesterday I sat in on a presentation from Lawrence Yun who is the chief economist for the National Association of Realtors.
Mr. Yun is almost always bullish on real estate (I think that’ his job). With that in mind here is a screenshot of one of the slides in his presentation. Mortgage applications are up and interest rates are down. There is absolutely no doubt that there are a lot of downtown Boston real estate buyers who want to buy a Boston condo and who are planning to do so in the coming months.
Rising downtown Boston real estate values mean that homeowners have more equity. I think we will see that “K” shaped economic recovery. Yun also notes that in states like Massachusetts where there were was more of a shut down because of the pandemic unemployment rates are higher than they are in states (or were) that did not close as many businesses for as long. Yet the current unemployment rate in Massachusetts national has dipped from its high, unemployment rate is 6.9%. (which sounds much better than 7%)
The numbers on the slide are from October and November. December is already shaping up to be a strong month for home sales. In a typical year, home sales are lower in the winter than in the spring. So far nothing about 2020 had been typical.