Will Boston have another real estate bubble?
No here’s why (video).
Mark Zandi of Moody’s Analytics says even though U.S. housing prices are high, people are not flipping properties to make a quick profit like how it was during the financial crisis of 2008.
Another interesting article from the Banker & Tradesman entitled: Setting the stage for the next housing bubble? To summarize, this year in the Boston area, just 3,500 homes were built. In 2005 at the height of the boom, more than 15,000 homes were built.
The following are excerpts from Scott Van Voorhis’s article on a disturbing trend:
That trend is the plunge in new housing construction. While there recently have been some bright signs of a modest turnaround here – stay tuned readers – 2009 saw the number of new homes built in the Boston area plunge to its lowest tally in decades.
When it comes to producing new housing, the Boston area has been running on empty for quite a few years.
And as the market heats up, this is one trend that is surely bound to come back to haunt us.
What are your thoughts? Are you concerned?