More news...

For the last several years, real estate has been in a pricing bubble. Prices have been substantially higher than historical relationships to incomes and rents would justify. While prices have started to decline, they are still abnormally high compared to these core fundamentals. This website is focused on analyzing the housing bubble, its aftermath, and real estate in general as it pertains to the Greater Boston Area.
 
Site Guide    Discussion Forums  |  Boston-Specific Info  |  National (US) Info  |  News & Links   
  

Boston-Specific Info

  • Boston Futures: For Greater Boston real estate prices from 1987 through the present and looking several years into the future, see the latest S&P/Case-Shiller Boston snapshot with futures (both before and after inflation). The futures markets are probably the most unbiased predictor of where housing prices are headed.
  • Price/Income: For a gauge of how overpriced the market is, see the latest report on the Greater Boston price to income ratio.
  • Inflation Adjusted: See the latest report on Massachusetts single family home prices for prices as typically reported by the local media but adjusted for inflation.
  • Price/Rent: Comparing prices to rents can help illuminate an overpriced market since many hypothetical justifications for higher home prices should raise rents as well. See the latest report on the Boston MSA price to rent ratio.
  • The population of the Greater Boston Area was declining as the housing market posted its most exceptional gains during the bubble. One of the fallacious arguments which was used to contest the existence of a housing bubble was that a growing population was pushing up the natural price of property. While that argument is flawed in general, it is especially wrong when the population is declining. [Boston Globe] [Boston Bubble]
  • The Wall Street Journal has identified Boston as one of the metropolitan areas in the US where it is cheaper to rent than to buy. Their data goes from 2001, when it was already cheaper to rent, to 2004 when the difference was even more pronounced. The Economist also published an article showing that renting is cheaper, and although it does not focus on Boston, it is very thorough about including various expenses and tax benefits that the Wall Street Journal left out. [Wall Street Journal] [The Economist]
  • Consumer Reports has rated real estate in the Boston market as "Overpriced" and pegged it at 24% over the affordable price as of Q4 2004. [Consumer Reports]
  • The number of homes sold in Massachusetts has been plummeting. For the third quarter of 2006 (the most recently reported quarter as of this writing), home sales have fallen 23% compared with the same quarter one year earlier. This despite the fact that home sales were already on the decline in 2005. [Worcester Telegram] [WCVB] [Milford Daily News]
  • Foreclosures are rising sharply in Greater Boston and Massachusetts. There were more foreclosures in the first nine months of 2006 than in all of 2005, and as of this writing (in November 2006), Massachusetts is on track to break the all time record in 2006. [Boston Globe] [Lowell Sun]
  • Boston and Massachusetts are the typical exceptions that people use to qualify their statements when they say that real estate prices don't fall. Boston and Massachusetts prices have fallen in the past, even in nominal terms (when adjusted for inflation, the fall is even more pronounced). Bear in mind that even if prices decline merely by the same percent that they have in the past, the leverage (a.k.a., margin or mortgage) used to purchase the homes must be taken into consideration - the substantially higher number of zero down and negative amortization loans will leave a lot of people with heavy losses and negative equity. [BusinessWeek] [Wall Street Journal (sub)]
  • To compensate for property that fails to sell, real estate agents in Boston are falling back on the deceptive practice of canceling the listing in MLS and then creating a new listing so that the property appears as new to the market. There were 10,606 MLS cancellations in the first six months of 2005, up from 9,722 cancellations in the first six months of 2004 and 3,736 in 2001. "The number of canceled listings in Massachusetts has nearly tripled since 2001... In a recent spot check of houses for sale on MLS in Middlesex County, Barry Nystedt, president of the Massachusetts Association of Buyer Agents, said one in four listings canceled between May 25 and June 25 was recreated by the same firm with a new MLS number." [Boston Globe]
>>> Discuss the Boston bubble now!
 

PARTNER LINKS

Furnished Apartments Boston
Stylish apartments throughout the
Downtown Boston area.
www.firstbostonrealty.com
 
Do-it-yourself homebuyers
Think Outside the Commission
100% buyer agency rebate option
realestatecafe.com
 
Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com
 

YOUR AD HERE

 

National (US) Info

  • Visit Patrick Killelea's housing crash blog. It is a fantastic resource providing ample quantitative background into the housing bubble.
  • Visit the Wikipedia article on the United States housing bubble for another excellent overview of the bubble on a national scale.
  • It is actually now cheaper to rent than to buy in many areas even after you factor in accumulated equity and tax savings. [The Economist]
  • Yale professor Robert J. Shiller released the first edition of his prophetic book warning of a stock market bubble weeks before the stock market began its epic crash in 2000. He recently released an updated second edition in late February, 2005 with similar warnings of froth in the real estate market. This book is very highly recommended and is quite readable despite the complexity of the subject. [Irrational Exuberance] [Amazon.com]
  • The current nationwide housing boom has been fueled in large part by historically low interest rates and an increase in the use of risky mortgages. Buyers may find that their monthly payments will skyrocket once the introductory period of their mortgage ends and the adjustable rate kicks in. In 2005, only $83 billion, or 1 percent, of mortgage debt will switch to an adjustable rate. In 2007, this number will leap to $1 trillion, or about 12 percent. [Herald Tribune]
>>> Discuss the national and worldwide housing bubbles now!
 

Boston Bubble News & Interesting Links

Get Updates: RSS Feed (What's RSS? -- RSS Readers: Feedly, Firefox)
Suggest a Link: News & Reference Suggestion Forum
Legend: Info/Broken? Info/Broken? Discuss Discuss
2014-04-22
Info/Broken? - Housing Secretary: "the worst rental affordability crisis that this country has ever known"
Discuss - Housing Secretary: "the worst rental affordability crisis that this country has ever known"
Housing Secretary: "the worst rental affordability crisis that this country has ever known"
2014-04-14
Info/Broken? - Lending Drops to 17-Year Low as Rates Curb Borrowing
Discuss - Lending Drops to 17-Year Low as Rates Curb Borrowing
Lending Drops to 17-Year Low as Rates Curb Borrowing
2014-04-08
Info/Broken? - Mass. pending home sales up 15% YOY in March
Discuss - Mass. pending home sales up 15% YOY in March
Mass. pending home sales up 15% YOY in March
2014-04-05
Info/Broken? - Middlesex North March recording stats, 2014 vs 2013: deeds down 8%; mortgages down 52%
Discuss - Middlesex North March recording stats, 2014 vs 2013: deeds down 8%; mortgages down 52%
Middlesex North March recording stats, 2014 vs 2013: deeds down 8%; mortgages down 52%
2014-04-03
Info/Broken? - Blackstone may shop its (commercial) Boston portfolio in bulk
Discuss - Blackstone may shop its (commercial) Boston portfolio in bulk
Blackstone may shop its (commercial) Boston portfolio in bulk
2014-04-03
Info/Broken? - US: Slumlord Wannabe Blackstone Violates Local Housing Laws by Making Tenants Maintain Rentals
Discuss - US: Slumlord Wannabe Blackstone Violates Local Housing Laws by Making Tenants Maintain Rentals
US: Slumlord Wannabe Blackstone Violates Local Housing Laws by Making Tenants Maintain Rentals
2014-03-27
Info/Broken? - Wanted: Employed 25- to 34-Year-Olds to Buy Houses
Discuss - Wanted: Employed 25- to 34-Year-Olds to Buy Houses
Wanted: Employed 25- to 34-Year-Olds to Buy Houses
2014-03-26
Info/Broken? - MA SFH Feb 2014 vs Feb 2013 - Warren Group: nominal median up 2%, volume down 4.1%
Discuss - MA SFH Feb 2014 vs Feb 2013 - Warren Group: nominal median up 2%, volume down 4.1%
MA SFH Feb 2014 vs Feb 2013 - Warren Group: nominal median up 2%, volume down 4.1%
2014-03-26
Info/Broken? - MA SFH Feb 2014 vs Feb 2013 - MAR: nominal median up 7.3%, volume down 5.9%
Discuss - MA SFH Feb 2014 vs Feb 2013 - MAR: nominal median up 7.3%, volume down 5.9%
MA SFH Feb 2014 vs Feb 2013 - MAR: nominal median up 7.3%, volume down 5.9%
2014-03-26
Info/Broken? - MAR Realtor Market Confidence Index Down 13% YOY
Discuss - MAR Realtor Market Confidence Index Down 13% YOY
MAR Realtor Market Confidence Index Down 13% YOY
2014-03-24
Info/Broken? - Map of home ownership by state from 2003 - 2013
Discuss - Map of home ownership by state from 2003 - 2013
Map of home ownership by state from 2003 - 2013
2014-03-24
Info/Broken? - Boston 2nd-most expensive city in United States
Discuss - Boston 2nd-most expensive city in United States
Boston 2nd-most expensive city in United States
2014-03-21
Info/Broken? - Officials can't decide whether there's a mountain lion in Winchester
Discuss - Officials can't decide whether there's a mountain lion in Winchester
Officials can't decide whether there's a mountain lion in Winchester
2014-03-20
Info/Broken? - Blackstone's Home Buying Binge Ends as Prices Surge: Mortgages
Discuss - Blackstone's Home Buying Binge Ends as Prices Surge: Mortgages
Blackstone's Home Buying Binge Ends as Prices Surge: Mortgages
2014-03-19
Info/Broken? - Fed reduces QE to $55B, will probably end it in fall, and may start raising rates 6 months later
Discuss - Fed reduces QE to $55B, will probably end it in fall, and may start raising rates 6 months later
Fed reduces QE to $55B, will probably end it in fall, and may start raising rates 6 months later
2014-03-14
Info/Broken? - Homebuyers: Will feeling blue morph into feeling misled?
Discuss - Homebuyers: Will feeling blue morph into feeling misled?
Homebuyers: Will feeling blue morph into feeling misled?
2014-03-13
Info/Broken? - MBTA Late-Night Service Begins March 28
Discuss - MBTA Late-Night Service Begins March 28
MBTA Late-Night Service Begins March 28
2014-03-07
Info/Broken? - Middlesex North Registry of Deeds reports sudden drop in mortgages recorded
Discuss - Middlesex North Registry of Deeds reports sudden drop in mortgages recorded
Middlesex North Registry of Deeds reports sudden drop in mortgages recorded
2014-03-03
Info/Broken? - Wells Fargo cuts 700 more mortgage jobs, bringing total cuts near 7,000
Discuss - Wells Fargo cuts 700 more mortgage jobs, bringing total cuts near 7,000
Wells Fargo cuts 700 more mortgage jobs, bringing total cuts near 7,000
2014-02-27
Info/Broken? - Wolf Richter: The Smart Money Quietly Abandons The Housing Market
Discuss - Wolf Richter: The Smart Money Quietly Abandons The Housing Market
Wolf Richter: The Smart Money Quietly Abandons The Housing Market
2014-02-26
Info/Broken? - Shiller: Signs housing is weakening
Discuss - Shiller: Signs housing is weakening
Shiller: Signs housing is weakening
2014-02-25
Info/Broken? - MA SFH Jan 2014 vs Jan 2013 - Warren Group: nominal median up 13%, volume up 5%; MAR: nominal median up 14%, volume up 1%
Discuss - MA SFH Jan 2014 vs Jan 2013 - Warren Group: nominal median up 13%, volume up 5%; MAR: nominal median up 14%, volume up 1%
MA SFH Jan 2014 vs Jan 2013 - Warren Group: nominal median up 13%, volume up 5%; MAR: nominal median up 14%, volume up 1%
2014-02-21
Info/Broken? - Boston 4th for income gap between rich and poor
Discuss - Boston 4th for income gap between rich and poor
Boston 4th for income gap between rich and poor
2014-02-20
Info/Broken? - MA REALTORS(R) felt confident about prices in January, but not as positive about the market
Discuss - MA REALTORS(R) felt confident about prices in January, but not as positive about the market
MA REALTORS(R) felt confident about prices in January, but not as positive about the market
2014-02-19
Info/Broken? - US housing construction down 16% in January
Discuss - US housing construction down 16% in January
US housing construction down 16% in January
2014-02-19
Info/Broken? - Somerville sellers deluded?
Discuss - Somerville sellers deluded?
Somerville sellers deluded?
2014-02-17
Info/Broken? - Micro-Apartments: Boston's Housing Solution Or Developers' Cash Cow?
Discuss - Micro-Apartments: Boston's Housing Solution Or Developers' Cash Cow?
Micro-Apartments: Boston's Housing Solution Or Developers' Cash Cow?
2014-02-14
Info/Broken? - Boston weakest market for expected house price appreciation based on Feb 14/15 calendar spreads for S&P/Case-Shiller futures
Discuss - Boston weakest market for expected house price appreciation based on Feb 14/15 calendar spreads for S&P/Case-Shiller futures
Boston weakest market for expected house price appreciation based on Feb 14/15 calendar spreads for S&P/Case-Shiller futures
2014-02-13
Info/Broken? - Mass. Pending Home Sales Up 1.4% YOY in January
Discuss - Mass. Pending Home Sales Up 1.4% YOY in January
Mass. Pending Home Sales Up 1.4% YOY in January
2014-02-04
Info/Broken? - Middlesex North January recording stats, 2014 vs 2013: deeds up 3%; mortgages down 59%
Discuss - Middlesex North January recording stats, 2014 vs 2013: deeds up 3%; mortgages down 59%
Middlesex North January recording stats, 2014 vs 2013: deeds up 3%; mortgages down 59%
2014-01-29
Info/Broken? - Fed continues taper as Bernanke's term ends
Discuss - Fed continues taper as Bernanke's term ends
Fed continues taper as Bernanke's term ends
2014-01-29
Info/Broken? - MA SFH Dec 2013 vs Dec 2012 - Warren Group: nominal median up 3.7%, volume down ~1% - "market is taking a breather"
Discuss - MA SFH Dec 2013 vs Dec 2012 - Warren Group: nominal median up 3.7%, volume down ~1% - "market is taking a breather"
MA SFH Dec 2013 vs Dec 2012 - Warren Group: nominal median up 3.7%, volume down ~1% - "market is taking a breather"
2014-01-29
Info/Broken? - MA SFH Dec 2013 vs Dec 2012 - MAR: nominal median up 6.3%, volume down ~0.25%
Discuss - MA SFH Dec 2013 vs Dec 2012 - MAR: nominal median up 6.3%, volume down ~0.25%
MA SFH Dec 2013 vs Dec 2012 - MAR: nominal median up 6.3%, volume down ~0.25%
2014-01-20
Info/Broken? - Massachusetts is number 8 for outbound moves
Discuss - Massachusetts is number 8 for outbound moves
Massachusetts is number 8 for outbound moves
2014-01-18
Info/Broken? - MAPC: Greater Boston needs 300,000 to 435,000 more housing units
Discuss - MAPC: Greater Boston needs 300,000 to 435,000 more housing units
MAPC: Greater Boston needs 300,000 to 435,000 more housing units
2014-01-13
Info/Broken? - Wait, What If We Try Giving People Home Loans They Can't Actually Afford To Pay Off?
Discuss - Wait, What If We Try Giving People Home Loans They Can't Actually Afford To Pay Off?
Wait, What If We Try Giving People Home Loans They Can't Actually Afford To Pay Off?
2014-01-08
Info/Broken? - NYTimes Op-Ed: The Bubble Is Back
Discuss - NYTimes Op-Ed: The Bubble Is Back
NYTimes Op-Ed: The Bubble Is Back
2014-01-07
Info/Broken? - Greater Boston price increases lag most metro areas
Discuss - Greater Boston price increases lag most metro areas
Greater Boston price increases lag most metro areas
2014-01-06
Info/Broken? - MA SFH Nov 2013 vs Nov 2012 - Warren Group: nominal median up 4%, volume down 2%; MAR: nominal median up 7+%, volume down 9%
Discuss - MA SFH Nov 2013 vs Nov 2012 - Warren Group: nominal median up 4%, volume down 2%; MAR: nominal median up 7+%, volume down 9%
MA SFH Nov 2013 vs Nov 2012 - Warren Group: nominal median up 4%, volume down 2%; MAR: nominal median up 7+%, volume down 9%
2014-01-01
Info/Broken? - Boston foreclosure activity plummets
Discuss - Boston foreclosure activity plummets
Boston foreclosure activity plummets
2013-12-27
Info/Broken? - 10-year Treasury yield closes over 3%, hits highest level since July 2011
Discuss - 10-year Treasury yield closes over 3%, hits highest level since July 2011
10-year Treasury yield closes over 3%, hits highest level since July 2011
2013-12-23
Info/Broken? - Fannie, Freddie hiking mortgage loan fees
Discuss - Fannie, Freddie hiking mortgage loan fees
Fannie, Freddie hiking mortgage loan fees
2013-12-19
Info/Broken? - Housing "Bubble 2.0"; Same as "Bubble 1.0", only different actors
Discuss - Housing "Bubble 2.0"; Same as "Bubble 1.0", only different actors
Housing "Bubble 2.0"; Same as "Bubble 1.0", only different actors
2013-12-18
Info/Broken? - Fed cuts bond-buying, trimmed equally from mortgage and Treasury bonds
Discuss - Fed cuts bond-buying, trimmed equally from mortgage and Treasury bonds
Fed cuts bond-buying, trimmed equally from mortgage and Treasury bonds
2013-12-18
Info/Broken? - An unsettling time for real estate owners and investors
Discuss - An unsettling time for real estate owners and investors
An unsettling time for real estate owners and investors

News & Interesting Links Index
Recent | All
  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 10 11 13 6                
2013 25 14 13 6 12 18 11 18 8 15 11 9
2012 24 23 27 19 16 6 9 11 7 7 8 13
2011 38 46 45 44 38 45 41 33 21 22 26 31
2010 51 40 63 63 42 48 45 42 40 52 36 43
2009 52 52 59 63 56 37 53 50 52 68 56 54
2008 76 79 77 71 69 51 56 49 66 61 42 48
2007 63 36 85 60 55 45 62 59 52 76 60 60
2006 24 19 40 46 59 45 34 42 44 50 57 49
2005               41 28 18 17 23
 

PARTNER LINKS

Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com
 

YOUR AD HERE


All content on this website Copyright 2005 - 2014, BostonBubble.com, except where noted. All rights reserved. Privacy policy in effect.

DISCLAIMER: The information provided on this website and in the associated forums comes with ABSOLUTELY NO WARRANTY, expressed or implied. You assume all risk for your own use of the information provided as the accuracy of the information is in no way guaranteed. As always, cross check information that you would deem useful against multiple, reliable, independent resources. The opinions expressed belong to the individual authors and not necessarily to other parties.