As 2016 comes to a close, there is an uptick of activity on BostonBubble, a forum for homebuyers in Greater Boston that dates back to 2005. A self-described “lowly renter” is asking advice about homebuying in the New Year because of pressure he’s getting from relatives. Know anyone in a similar situation, or having similar conversations with your own peers about housing in a DysTrumpian era?
One renter adamantly wrote, “that parabolic up moves in prices in any market ALWAYS are an the tell of a coming crash.” We generally agree but submit that it’s more complicated than that; otherwise the “totally artificial housing market” (Robert Shiller’s characterization) would have turned down by now. See why we thought that way during 4Q2013 via the empathy map above.
Housing Resolutions for the New Year
New Year’s is a time to look into the future, and there are numerous ways to do that. If you’re a “lowly renter” getting pressure to buy consider the following:
Short-term perspective: Rather than dismissing well-intended relatives, maybe you can ask for their empathy. Copy this Empathy Map on Google Drive, complete it and ask your relative, parent, spouse, whomever to do the same. Compare your perceptions of whether it’s a good time to buy, and maybe even share your responses here or offline in person:
http://bit.ly/EmpathyRE2017 (share via social media)
Long-term perspective: Despite the number of people in gig economy jobs, conventional mortgages are still for 30 years. Given that, read stories on the two links below:
Will half of jobs really disappear in the next 25 years?
http://bit.ly/FutureJobsShock (share via social media)
Future Proofing Homebuying Decisions
Wonder if mortgage lenders will begin rejecting or risk pricing loans based on the prospect that one’s livelihood will disappear before the end of their loan? Regardless, what impact will that have on housing expenditures (not just housing prices)?
Some say disruptive demographics will take housing down again before jobs begin to disappear. Greater Boston and New England already have a disproportionate percent of people over 60. Would you buy or sell a home in 2017 knowing that the next housing downturn will become more obvious by 2020? What are you doing to future proof your decisions?
http://bit.ly/SrSellOff (share via social media)
As written in our previous blog post, there are already signs that the housing market is slumping. Anyone else fear that we could see another lost decade in housing? How does that influence your home buying strategy?
http://bit.ly/LostRE (share via social media)
Meet Offline next week?
Regardless of whether you plan on buying in 2017 or hear warning bells, want to meet off-line to complete / compare housing Empathy Maps including our own from 4Q2013? For those hoping to buy, want to learn more about “Defensive Homebuying”?
Contact us by calling 617-661-4046 or this form for more information. We hope to host offline events, we call “Bubble Hours” over beer in 2017. Follow #REonTap on @RealEstateCafe
http://bit.ly/REonTap (share via social media)