I argue that two main factors help to explain the lion’s share of impact on Boston Metro’s stable housing market, even through the sub-prime mortgage collapse just over 10 years ago: 1. Boston aream University System (MIT, Harvard, BU, BC, Tufts, Brandeis, Northeastern, etc.). 2. The explosion in Biotechnology, Research and Innovation particlarly in the last 5-7 years.
These protective factors create relative lower risk conditions for various real estate investment strategies, particularly long-term. In the current market, demand far outweighs supply and housing prices are at a premium. However, with careful planning and a thoughtful bidding strategy even first-time investors can enter the market. I would be happy to discuss specific questions related to the market anytime, just reach out. I have access to the most up to date raw sales data through the Multiple Listing Service.
Below is snapshot of three Boston area condominium sales figures 2005-2017. The grey bars represent inventory, the colored trends are sales prices and the light grey trends are ratio of sale price to listing price. Note the similar trends among all three, especially relatively steady numbers through the 2008 bubble collapse compared to many parts of the country, which witnessed double digit downturns. Although, as you can see “Camberville’s” value is much more robust than Quincy’s, which had a small dip and has just started to return to pre-bubble prices. How long this rate of growth will continue is uncertain but it’s reasonable to surmise that Cambridge and Somerville areas offer some protection against the negative effects from large economic market fluctuations.