Boston Area Housing Market Strength Is Likely Temporary

Residential Housing MarketThe 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?

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One Response to Boston Area Housing Market Strength Is Likely Temporary

  1. John Gambone says:

    I agree with your post. The conditions certainly seem to be creating the environment we are now in. Now the question on the sustainability of the situation. Well, we all know that markets are rather cyclical. Right now we have a great situation for buyers. We are also seeing homes close on the seller’s side, even though many may not be receiving what they paid for them. If a seller is in a tight spot, I think he can feel confident that he can find it close at fair market value in a relatively “short & sweet” period of time, provided the buyer’s are capable of finding that necessary financing for those situations where it is needed. The buyer’s who are well positioned have a seeming opportunity to take advantage of the current conditions. However, if we see a second wave of economic troubles, would being positioned and taking action turn to be worthy, or would it be “penny wise and pound foolish”. Do I think it is sustainable for some time, my short answer would be yes. I think the real question hinges on the full compass of global and national economics. Where will we be as a nation 2-3 years from now?

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