Boston Real Estate for Sale
Updated 2020: Though financing costs remain low, high demand is continuing to push up home prices across the country. According to the recent Home Price Index released by global analytics firm CoreLogic, home prices rose 4.9% in June compared to a year earlier.
Month over month, home prices were up 1% over May, the largest monthly gain for the month of June since 2013. Despite rising home prices, low-interest rates mean buyers need less income to afford a home, at least for now.
Boston Real Estate Prices Continue Rising
In Boston, home prices were up 2.8% in June compared to a year earlier.
Overall, the housing market is showing surprising signs of resiliency in the face of the pandemic and related economic fallout, although CoreLogic’s forecast predicted a modest decline in home prices by June 2021.
Older Boston Real Estate Blog Post
We’re currently in the longest economic recovery in U.S. history. That has caused some to Boston real estate brokers to project when the next economic Boston condo for sale slowdown (recession) could occur. Two years ago, 67% of the economists surveyed by the Wall Street Journal (WSJ) for the Economic Forecasting Survey predicted we would have a recession no later than the end of this year (2020). The same study done just three months ago showed more than one-third of the economists still saw an economic slowdown right around the corner.
The news caused concern among Boston high rise condo buyers. This is evidenced by a recent survey done by realtor.com that shows 53% of home purchasers (first-time and repeat buyers) currently in the market believe a recession will occur by the end of this year.
Our Boston real estate brokers & economist changing their minds….?
Now, in an article earlier this month, the Wall Street Journal (WSJ) revealed only 14.3% of those economists now believe we’re in danger of a recession occurring this year (see graph below): The WSJ article strongly stated,
“The U.S. expansion, now in its 11th year, will continue through the 2020 presidential election with a healthy labor market backing it up, economists say.”
This optimism regarding the economy was repeated by others as well.
CNBC, quoting Goldman Sachs economists:
“Just months after almost everyone on Wall Street worried that a recession was just around the corner, Goldman Sachs said a downturn is unlikely over the next several years. In fact, the firm’s economists stopped just short of saying that the U.S. economy is recession-proof.”
Barron’s:
“When Barron’s gathers some of Wall Street’s best minds—as we do every January for our annual Roundtable—we expect some consensus, some disagreement…But the 10 veteran investors and economists who convened in New York on Jan. 6 at the Barron’s offices agree that there’s almost no chance of a recession this year.”
Washington Post:
“The U.S. economy is heading into 2020 at a pace of steady, sustained growth after a series of interest rate cuts and the apparent resolution of two trade-related threats mostly eliminated the risk of a recession.”
Robert A. Dye, Chief Economist at Comerica Bank:
“I expect that the U.S. economy will avoid a recession in 2020.”
Boston Real Estate for Sale & the Bottom Line
Even I have changed my mind. There probably won’t be a recession this year. That’s good news for you, whether you’re looking to buy or sell a Boston downtown condo.
