For anyone who has lived in Boston (or New York, San Fran) over the past 10 years, you've watched as housing prices have jumped exponentially. It almost made sense when income was rising, unemployment was dropping, and business was good.
Then there was the dot.com collapse. Oh, and something went wrong with jobs at Enron... or was it Global Crossing? Worldcom? Anyways...
Most every aspect of growth & expansion was halted or reversed, except for the housing market.
Finally, that is changing - more "down there."
This is not a surprise for those who have been following the factors that contribute to housing costs. To jump-start the economy post S11, interest rates were lowered to amazing rates to encourage housing purchases. And, to noone's surprise, people bought housing.
Now, a few years after most of the other markets have slowed down, the housing market is starting to balance itself.
I have been waiting to find a house in the city, but I knew the prices were too high for the value ($300k for a <1000ft 1 bedroom "condo"?!?). Last summer, I moved into the neighborhood where I plan on eventually buying. Three doors down, there was a traditional three-story house that was flipped into three condos. The first two sold within the first three months of it being available - just like that. But the last one has had some difficulties selling... it just won't sell. Now, over a year since the 2nd condo sold, it's still for sale.
I chuckle every time I pass & see the faded & weather-worn HURRY - One Condo Left! sign out front. I'm half-tempted to put a Please buy the last damned condo so we can take this pug-fugly sign down! sign of my own...
Today the Boston Globe had a small piece saying all those sweet things I've been waiting to hear. Even though it might have made better sense in the short-term to build equity in an overpriced condo, I didn't want to be stuck with an undersized & overpriced condo I couldn't sell when the market adjusted itself - which looks more & more like that would have been the case.
The market here in Boston has hit a point where the agents are using shady techniques to garner interest in a stagnant property.
To remove the stigma attached to a house that won't sell and make a fresh appeal to home buyers, some real estate agents reset the clock on the number of days a property has been listed -- a practice critics liken to resetting the odometer on a used car.
Any other Boston Kossacks seeing similar situations? How about Kossacks in other hot markets such as New York, San Fran, etc? Any relief in sight?
