The Bay State Realtors picked a curious time — given that interest rates are rising, and many housing markets are starting to soften — to issue a report predicting that Boston housing was going to keep rising ever-upward in coming years. The report — titled “Refuting the Bubble” — claims Bay State home prices likely “will continue to rise rather than decline in the coming months and years,” according to this account in the Boston Herald. Karl Case, a housing economist at Wellesley College, was quoted as being at least mildly skeptical of the Realtor’s conclusions. Among the headwinds are lackluster job growth, an exodus of residents to other areas, and a high housing price-to-income ratio. We have a raging debate occurring on this blog on the Washington DC housing market, but nothing on Boston. I’m curious what Bostonians are seeing in the local housing market.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.