There are economic concerns surrounding things like the ongoing supply chain
issues, which is bumping up construction timelines, as well as the Russian
invasion of Ukraine, which can drive up energy prices and theoretically elevate
construction prices in the process.
“Limited supply is the main culprit of Greater Boston’s slowdown in home sales,
but economic and geographic tensions abroad are still areas of concern,” real
estate and economic experts told Boston.com this week. However, the slow-
down in sales doesn’t really have local economists fearful of the market
crash reminiscent of the Great Recession, especially as many regulations
enacted since then prevent the kind of loose credit that really caused the crash
of 2008.
It remains to be seen how long buyers can weather this storm.
Rising interest rates are also combating inflation, which can dampen the homebuyers' interest as mortgage rates jump. It remains to be seen how long buyers can weather this storm and how long homeowners will watch their values rise before deciding to list. Neither has blinked yet, but something has to give eventually.
However, that won’t necessarily translate into a bust in the Northeastern Massachusetts area. Economists generally see the region’s economy as backed by higher education, healthcare, and life sciences industries that rely on in-person work as a safety net against a boom-or-bust scenario.
If you have any questions about local, regional, or national real estate, or if you’re planning to move and would like a complimentary consultation, feel free to give us a call or send us an email. We’d love to hear from you.
