Experts Weigh In on Post-COVID Housing Market

Despite the obvious slow down in real estate market, experts are quite optimistic that the real estate market will pick right back up once COVID-19 resolves, especially in a market like Boston. With an already limited housing supply, experts also don’t expect a big dip in housing prices either. “Once the economy can return to normal, and people can get back to normal, I think the fundamental shortage of homes will still be there. That’s why I don’t see much prospect for prices to fall very far as a consequence of this,” said Jeff Tucker, a Zillow economist.

In the meantime, real estate agents are getting creative with virtual tours and other ways of “showing” properties with prospective buyers and tenants and the City of Boston has created a fund to help tenants pay rent. For more details about the current and future housing market, click here.

Will COVID-19 Affect the Housing Market?

There is a lot of speculation as to what may happen to the housing market in the wake of the COVID-19 pandemic. After the 2008 recession, it is easy to imagine a similar scenario where housing prices drop drastically and properties sell for a fraction of what they were valued at prior to the recession. However, there is a major difference between the 2008 recession and the potential recession caused by coronavirus, as explained in a recent Curbed article — the 2008 recession was caused by the collapse of the housing market, whereas coronavirus is causing many markets to essentially freeze until further notice. So, what can we expect to happen? Ultimately, we agree with the author’s main conclusion - it’s too soon to tell what the effects of COVID-19 will be on the housing market, but click here to read through a few scenarios you may find yourself in if there is a recession.

Will Boston Follow New York's Lead and Ban Broker Fees?

There was big news coming out of the New York real estate market this week - the New York Department of State clarified a previous regulation stating that brokers can no longer charge rental tenants a “broker fee” if they are hired by a landlord to market the rental unit. Instead, the landlord must cover the broker fee. The only case in which a broker fee applies to the tenant is if they personally hire an agent to help them find a rental apartment. The repercussions of such a shift in who will the broker could be manifold. Some suspect that landlords will just raise rent to cover this added expense for them. Others say this will have a positive effect on tenant’s ability to move because their expenses in doing so will be less.

The Real Holdup with Solving Boston's Housing Shortage

Last week, we wrote about Mayor Walsh’s vision for the next decade, particularly how he plans to add housing units to the city with the goal of making it more affordable for working people. Interestingly, this article from the Boston Business Journal reports that Governor Baker put a bill before the state legislature more than 8 months ago that would make it easier to rezone areas for housing. This bill would greatly help Mayor Walsh move forward on his housing plans for the city, so it’s time our state legislators get behind these visions.

Boston's Boom Sparks Rise in Property Values

Ahead of the new year, the Boston Municipal Research Bureau is releasing a five-part series on Boston’s economic boom since 2013. The first report property values have hit a high of $164.5 billion in 2019, which is an increase of 78.4% since 2013. The city’s population has grown about 6% which is about 40,000 people. Rising property values, new construction of all types, the influx of people, and a strong business sector are all part of Boston’s boom. Click here to read more about which neighborhoods have seen the biggest growth in property values.

Where Is the Housing Market Headed?

New data about the national housing market shows some positive signs that the market is growing steadily again. Prices of existing homes rose 6.2 percent, building permits (an indication of new homes being built) increased 5 percent, and mortgage rates are low at 3.66 percent, according to a recent Fox Business report. See what some experts have to say about these indicators by clicking here.

Boston Is on the Up and Up

As Bostonians, we can always find things to complain about; weather, traffic, housing prices, and Tom Brady potentially retiring at some point. However, Curbed’s most recent article highlights 10 reasons why the Boston area is only getting better. Check it out here.

The Effects of Falling Mortgage Rates

“Lenders extended $700 billion of home loans in the July-to-September quarter, the most in 14 years, according to industry research group Inside Mortgage Finance,” as was reported in a recent Wall Street Journal article. The authors suggest that the spike in home loans is due to falling mortgage interest rates. Many homeowners have taken advantage of the low rates by refinancing their home loans. In addition, home sales have risen on an annual basis, but not as much as expected, possibly due to the lead time it takes to find and close on a home once someone has decided to take advantage of the low rates and actually buy a home. For more analysis on the causes and effects of falling mortgage rates, click here.

Massachusetts' Dukes County Has Highest Percentage of Vacation Homes in US

You may not find it too surprising that Dukes County, home to both Martha’s Vineyard and Nantucket, has the highest percentage of vacation homes in the country at 55.5%. While the vacation season is short compared to other vacation destinations (think Florida, California, Carolinas), people flock to Nantucket and Martha’s Vineyard for its’ exclusivity and sense of safety. Read more about the real estate market on these special islands by clicking here.

Public Transportation and Real Estate Prices - Are They Linked?

It is no secret that cities across the country are facing transportation challenges as urban populations grow and Boston is no exception. According to a recent Boston.com article, “Governor Charlie Baker has proposed an $18 billion transportation bond bill that would help fund the T’s 13-year maintenance backlog, as well as expansion efforts.” This is just one effort among many to get Greater Boston’s public transportation to serve more people more efficiently and reliably so less people have to rely on driving in increasingly heavy commuter traffic.

So, what effect, if any, will Boston’s transportation difficulties have on the real estate market?

FHA Plans to Back More Condo Loans - What Will the Effects Be?

The FHA plans to back 60,000 additional condo loans each year on top of the roughly 16,000 it already backs. So what exactly does that mean? In short, an FHA-backed loan only requires a 3.5% down payment and they often lend to people with lower credit scores. Both of these things combined will allow more first-time home buyers to enter the market because they don’t need to save as large a down payment or build up their credit history. This is especially true in larger cities across the US where home prices are rising and preventing many from entering the market. Read this article from the Wall Street Journal to discover what experts are saying the pros and cons of this policy are.

Is Tom Brady Going to Retire?

There is no doubt Pats fans (and Pats haters) are going to speculate about Tom Brady’s future now that he has put his Brookline home on the market for $39.5 million. Is retirement near? Who knows. What we do know is that his Brookline mansion is one awesome piece of real estate and you can check out here.

Garrett HoganAugust 6, 2019tom brady, real estate prices, real estate market, Boston, Boston real estate, brookline

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