Local Real Estate's New Normal
Â Well its been a number of years since the local real estate market tumble. I am sure economists may differ on what the actual date was but if you ask a real estate agent they will tell you 2005. That was the year that everything changed. If you bought or refinanced in that year you know it too.
Â But things have improved despite what you may read in the papers. Always make sure that you are reading about the local market not the national market. What is happening in Ohio, Nevada or the Florida panhandle holds little relevance to the local real estate market.
Â I have always felt that the housing market's reactions are like dropping a pebble in a pond and watching the ripples. In this case, the pebble has been dropped in the Boston area and the ripples will spread to the suburbs. I believe that at this point the ripples have covered Boston, Brookline, Newton, Cambridge and the suburbs close to Boston. I think that the areas further out have improved but have a ways to go.
Â In my opinion the reason is jobs. Drive through Cambridge and see the cranes in the air and know that that means more jobs are coming. Â Drive through the Longwood area and see all of the medical buildings being built in that area... more jobs. Drive through the Seaport District and see people working 7 days a week to get projects done.
Â The local economy is improving and so is the local housing market. You might be surprised to see that if you live in or around Boston the home that you bought or refinanced in 2005 is no longer "under water".Â
Â The financial number that I watch to gauge the housing market is the Unemploment Number. The lower that goes the more confident people feel about their job and the more likely they are to buy or sell.
Â As usual I can be reached at email@example.com.