Warning signs that the Boston condo sales spring market could be grim
Boston Condos for Sale and Apartments for Rent
Warning signs that the Boston condo sales spring market could be grim
Wall Street has been focused on the recent surge in oil and gasoline prices, which reduces the buying power of potential home buyers, but that’s not the main reason for analyst Kenneth Zener’s U-turn on home builders. What undermines the view that demand for new homes was stabilizing, he said, is data showing that job growth has been weak and that the break-even employment rate — the hiring needed to offset job losses — appears to be in long-term decline.
And he believes that concern has not yet been priced in to the sector. For that reason, he swung to bearish on five home-builder stocks and neutral on three, after previously being bullish on seven stocks and neutral on one.
“We acknowledge the reactive appearance of this call, but what we interpreted as a bottoming process, akin to prior cycles last year, appears less so now,” Zener wrote in a note to clients.
“A lower job rate represents a significant, and we think still un-priced risk, to the housing sector,” he added.
Warning signs that the Boston condo sales spring market could be grim
Boston condo sellers before you watch this video, please remember this is based on national housing stats. In the near future, I’ll post the most recent stats for our local Boston condo for sale market.
Peace be with you
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