Gloomy Forecast For Massachusetts Real Estate Prices?

This morning's Boston Globe Business section carried a rather gloomy headline: "Forecasters: No quick end to housing ills." The story, at http://www.boston.com/business/ticker/2008/01/boston_fed_pres_1.html cited remarks made by the president of the Federal Reserve Bank of Boston, Eric Rosengren, in Hartford, Conn. yesterday, the gist of which were that "the current housing slump could be the longest in 50 years, increasing the risk of a broader economic downturn." He indicated that spending by home buyers has been declining since the beginning of 2006 and will continue to fall through June of this year. The article also cited the December report of the chief economist for Moody's www.economy.com that "prices in the Boston area would decline into the first quarter of 2009."

Of course at the tail end of the article, at which point most readers have already move on to something else, the author cites Harvard's Joint Center for Housing Studies, which noted that "a rebound is inevitable," and that a growing population and rising wealth "will help propel residential spending to new heights." Which only reinforces my belief that this is a great time to buy. Will prices continue to drop? They certainly might, but as one wag said, "you'll need a rear view mirror to see the bottom." I'd like a nickle for every time I cursed myself for not buying everything I could lay my hands on in the early 90's, when it was practically impossible to give away real estate. Are we in a similar buying situation? We may very well be. If I were an investor (which I am, actively) a first time homebuyer, or a move-up buyer I'd be out there looking, because I firmly believe this is the best time to purchase real estate in years.

Jon Treon can be reached via email at jon@jontreon.com or by phone at 508-397-6081. Jon has been assisting buyers and sellers in Natick, Framingham and Wayland, Massachusetts and other Metrowest towns for the last 15 Years. Visit my website at http://www.jontreon.com/ for the latest MLS listings and buyer and seller info.