Recently, Boston Magazine published an article titled “Is Boston’s Real Estate Bubble Unpoppable?” https://www.bostonmagazine.com/news/2018/12/11/boston-real-estate-bubble/
These days, the national housing market is really under the spotlight, with the FED hiking rates, rumors of recession, and an uptick in the number of properties coming onto the market – and lingering longer. Then there is the Republican tax bill, which capped the mortgage interest deduction at $750,000.
Ok. So that all said, where does this leave Boston’s real estate market? Well, according to the article, it’s not on shaky footing.
The piece cites Felipe Chacon, an economist at Trulia, who notes that all the new construction is not keeping up with the demand – and that because of that, “even if there were a sudden economic downturn, neighborhoods all over Boston, Cambridge, Somerville – the ones where values have been rocketing up at 12 percent per year – are virtually recession proof.”
I can certainly attest to that in the ultra luxury market: at the Four Seasons Private Residences at One Dalton Street (due to open this spring) and at the St. Regis Residences (due to open late 2020), we have seen and continue to see tremendous interest from national and international buyers.
What about the outlining suburbs?
Well, many of them (Weston, Wellesley, Dover, Chestnut Hill) are known for having the top public school systems in the country, in addition to having many elite independent schools. That is an undeniable draw for families, and I maintain will keep property values strong. Additionally, according to PwC partner and business development leader Mitch Roschelle, Boston’s unique mix of top universities, health care, tech, and finance will very likely keep the market simmering. In the Boston Magazine piece, he is quoted as saying, “Boston feels like a robust economy. Our universities…not only create a steady demand for housing, but a pipeline of talent that makes the city a particularly enticing destination for companies. In fact, PwC named Boston the seventh-best city in America in which to invest in real estate – comfortably ahead of techy rivals Seattle (16) and San Francisco (41) – in part because our diverse economy which can insulate us from national downturns.” He doesn’t include our “winning-est” sports teams as a magnet for buyers, but I feel compelled to include it!
All joking aside and in closing, if you are considering listing your home for sale, acquiring an investment property, or relocating to the area, let’s talk.