The Boston area residential real estate market has been better than it has been in years without direct government stimulus. I don’t think it will last. Radar Logic Research’s March monthly market report does a good job summing it up.
- Radar Logic summarizes the issue as oversupply. I see it as there are many more REO’s heading to market. REO’s drive prices down. Some of the activity occuring right now is due to pent up demand. The pent up demand might not last.
- Interest rates will not stay this low indefinitely. We have the European financial crisis to thank for our extremely low interest rates. Interest rates and residential housing prices move in opposite directions.
Do you think this housing market strength signals a long term turn around?