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
<< << << Show Recent Links
2009-09-30
Info/Broken? - Cambridge Runs Amok - A template for massive municipal profligacy
Discuss - Cambridge Runs Amok - A template for massive municipal profligacy
Cambridge Runs Amok - A template for massive municipal profligacy
2009-09-30
Info/Broken? - Cambridge sales slowed in August
Discuss - Cambridge sales slowed in August
Cambridge sales slowed in August
2009-09-30
Info/Broken? - Is Housing's False Bottom Beginning to Give Way?
Discuss - Is Housing's False Bottom Beginning to Give Way?
Is Housing's False Bottom Beginning to Give Way?
2009-09-30
Info/Broken? - What's the real reason that banks aren't foreclosing?
Discuss - What's the real reason that banks aren't foreclosing?
What's the real reason that banks aren't foreclosing?
2009-09-29
Info/Broken? - Poll: Will $8K homebuyer credit be extended?
Discuss - Poll: Will $8K homebuyer credit be extended?
Poll: Will $8K homebuyer credit be extended?
2009-09-29
Info/Broken? - MA SFH nominal median for Aug 2009 vs Aug 2008 - Warren Group: -6.2%, MAR: -3.1%
Discuss - MA SFH nominal median for Aug 2009 vs Aug 2008 - Warren Group: -6.2%, MAR: -3.1%
MA SFH nominal median for Aug 2009 vs Aug 2008 - Warren Group: -6.2%, MAR: -3.1%
2009-09-29
Info/Broken? - Blame Barney Frank If a Pool Isn't in Your Future
Discuss - Blame Barney Frank If a Pool Isn't in Your Future
Blame Barney Frank If a Pool Isn't in Your Future
2009-09-29
Info/Broken? - 4 indicted in mortgage scheme
Discuss - 4 indicted in mortgage scheme
4 indicted in mortgage scheme
2009-09-29
Info/Broken? - Wall Street bonuses poised to rebound
Discuss - Wall Street bonuses poised to rebound
Wall Street bonuses poised to rebound
2009-09-28
Info/Broken? - MA SFH nominal median down 3.1% YOY in August
Discuss - MA SFH nominal median down 3.1% YOY in August
MA SFH nominal median down 3.1% YOY in August
2009-09-28
Info/Broken? - Did Cobden St foreclosures let scammer walk away with $3.8M?
Discuss - Did Cobden St foreclosures let scammer walk away with $3.8M?
Did Cobden St foreclosures let scammer walk away with $3.8M?
2009-09-28
Info/Broken? - Squatter claims moral right to live in foreclosure on Cobden St, bank has no plans to remove her
Discuss - Squatter claims moral right to live in foreclosure on Cobden St, bank has no plans to remove her
Squatter claims moral right to live in foreclosure on Cobden St, bank has no plans to remove her
2009-09-25
Info/Broken? - Land notoriously seized via eminent domain for private development (by Boston developer) sits vacant 4 years later
Discuss - Land notoriously seized via eminent domain for private development (by Boston developer) sits vacant 4 years later
Land notoriously seized via eminent domain for private development (by Boston developer) sits vacant 4 years later
2009-09-25
Info/Broken? - Six overlooked Mass. towns
Discuss - Six overlooked Mass. towns
Six overlooked Mass. towns
2009-09-24
Info/Broken? - Redfin on Aug 2009 vs Aug 2008 for Eastern Mass. SFH, condos, multi-families: median down 2% (nominal), sales down 1%
Discuss - Redfin on Aug 2009 vs Aug 2008 for Eastern Mass. SFH, condos, multi-families: median down 2% (nominal), sales down 1%
Redfin on Aug 2009 vs Aug 2008 for Eastern Mass. SFH, condos, multi-families: median down 2% (nominal), sales down 1%
2009-09-24
Info/Broken? - Home Sales Falter After 4-Month Gain
Discuss - Home Sales Falter After 4-Month Gain
Home Sales Falter After 4-Month Gain
2009-09-24
Info/Broken? - Middlesex North Registry of Deeds Aug 2009 foreclosure stats: 13% YOY decline
Discuss - Middlesex North Registry of Deeds Aug 2009 foreclosure stats: 13% YOY decline
Middlesex North Registry of Deeds Aug 2009 foreclosure stats: 13% YOY decline
2009-09-23
Info/Broken? - Housing Crash to Resume on 7 Million Foreclosures
Discuss - Housing Crash to Resume on 7 Million Foreclosures
Housing Crash to Resume on 7 Million Foreclosures
2009-09-23
Info/Broken? - Dollar carry trade may hurt U.S. economy
Discuss - Dollar carry trade may hurt U.S. economy
Dollar carry trade may hurt U.S. economy
2009-09-23
Info/Broken? - G-20 heads to Pittsburgh with flat tire on trade
Discuss - G-20 heads to Pittsburgh with flat tire on trade
G-20 heads to Pittsburgh with flat tire on trade
2009-09-23
Info/Broken? - Boston nation's 7th most unaffordable city (still)
Discuss - Boston nation's 7th most unaffordable city (still)
Boston nation's 7th most unaffordable city (still)
2009-09-23
Info/Broken? - Massachusetts population nation's 2nd most educated
Discuss - Massachusetts population nation's 2nd most educated
Massachusetts population nation's 2nd most educated
2009-09-22
Info/Broken? - MA foreclosure petitions leap 154% YOY in August
Discuss - MA foreclosure petitions leap 154% YOY in August
MA foreclosure petitions leap 154% YOY in August
2009-09-21
Info/Broken? - Fed Rejects Geithner Request for Study of Governance, Structure
Discuss - Fed Rejects Geithner Request for Study of Governance, Structure
Fed Rejects Geithner Request for Study of Governance, Structure
2009-09-21
Info/Broken? - MA vs. RI unemployment, August 2009: MA up to 9.1%, RI rises to 12.8%, spread still near peak
Discuss - MA vs. RI unemployment, August 2009: MA up to 9.1%, RI rises to 12.8%, spread still near peak
MA vs. RI unemployment, August 2009: MA up to 9.1%, RI rises to 12.8%, spread still near peak
2009-09-18
Info/Broken? - State's jobless rate hits 9.1%
Discuss - State's jobless rate hits 9.1%
State's jobless rate hits 9.1%
2009-09-18
Info/Broken? - Most of South End building's condos unsold
Discuss - Most of South End building's condos unsold
Most of South End building's condos unsold
2009-09-18
Info/Broken? - Homestead Seminar Next Week in Billerica
Discuss - Homestead Seminar Next Week in Billerica
Homestead Seminar Next Week in Billerica
2009-09-18
Info/Broken? - Credit Policies Still Threaten Recovery
Discuss - Credit Policies Still Threaten Recovery
Credit Policies Still Threaten Recovery
2009-09-17
Info/Broken? - MIT Endowment Off by 21%
Discuss - MIT Endowment Off by 21%
MIT Endowment Off by 21%
2009-09-17
Info/Broken? - Struggles of local biotech companies reflected in declining market for lab space
Discuss - Struggles of local biotech companies reflected in declining market for lab space
Struggles of local biotech companies reflected in declining market for lab space
2009-09-17
Info/Broken? - Massachusetts one of four states prevented from using stimulus money for public housing
Discuss - Massachusetts one of four states prevented from using stimulus money for public housing
Massachusetts one of four states prevented from using stimulus money for public housing
2009-09-16
Info/Broken? - Harvard Endowment Woes Spur Protests Over Vacant Properties
Discuss - Harvard Endowment Woes Spur Protests Over Vacant Properties
Harvard Endowment Woes Spur Protests Over Vacant Properties
2009-09-16
Info/Broken? - Trends in Somerville housing discussed at latest SomerVision meeting
Discuss - Trends in Somerville housing discussed at latest SomerVision meeting
Trends in Somerville housing discussed at latest SomerVision meeting
2009-09-15
Info/Broken? - Housing Prices Have Turned Homes Into Shelters, Not Investments
Discuss - Housing Prices Have Turned Homes Into Shelters, Not Investments
Housing Prices Have Turned Homes Into Shelters, Not Investments
2009-09-14
Info/Broken? - Too Gloomy? Whitney Predicts 25% Home Price Plunge
Discuss - Too Gloomy? Whitney Predicts 25% Home Price Plunge
Too Gloomy? Whitney Predicts 25% Home Price Plunge
2009-09-14
Info/Broken? - Uncovering Troubled Mortgage Lenders Is Not Easy For Homebuyers - Massachusetts refuses to release details
Discuss - Uncovering Troubled Mortgage Lenders Is Not Easy For Homebuyers - Massachusetts refuses to release details
Uncovering Troubled Mortgage Lenders Is Not Easy For Homebuyers - Massachusetts refuses to release details
2009-09-14
Info/Broken? - Boom to bust: Anatomy of a loan gone bad
Discuss - Boom to bust: Anatomy of a loan gone bad
Boom to bust: Anatomy of a loan gone bad
2009-09-14
Info/Broken? - America Out of Work: Is Double-Digit Unemployment Here to Stay?
Discuss - America Out of Work: Is Double-Digit Unemployment Here to Stay?
America Out of Work: Is Double-Digit Unemployment Here to Stay?
2009-09-11
Info/Broken? - Harvard Endowment Declines 30%
Discuss - Harvard Endowment Declines 30%
Harvard Endowment Declines 30%
2009-09-10
Info/Broken? - Nouvelle at Natick condos to be auctioned at about 70% below previous asking prices
Discuss - Nouvelle at Natick condos to be auctioned at about 70% below previous asking prices
Nouvelle at Natick condos to be auctioned at about 70% below previous asking prices
2009-09-10
Info/Broken? - Frank, Durbin Renew Call for Cramdown
Discuss - Frank, Durbin Renew Call for Cramdown
Frank, Durbin Renew Call for Cramdown
2009-09-10
Info/Broken? - Fewer residents get building jobs - Under Menino, number of minority, women workers sink
Discuss - Fewer residents get building jobs - Under Menino, number of minority, women workers sink
Fewer residents get building jobs - Under Menino, number of minority, women workers sink
2009-09-09
Info/Broken? - Floor falls out for Boston's luxury condo prices
Discuss - Floor falls out for Boston's luxury condo prices
Floor falls out for Boston's luxury condo prices
2009-09-08
Info/Broken? - Massachusetts has 4,548 accepted homebuyer tax credit applications so far
Discuss - Massachusetts has 4,548 accepted homebuyer tax credit applications so far
Massachusetts has 4,548 accepted homebuyer tax credit applications so far
2009-09-07
Info/Broken? - Frank wants to be HUD secretary, once he "get[s] the federal government back in the housing business"
Discuss - Frank wants to be HUD secretary, once he "get[s] the federal government back in the housing business"
Frank wants to be HUD secretary, once he "get[s] the federal government back in the housing business"
2009-09-07
Info/Broken? - Buyers profited by city's discount
Discuss - Buyers profited by city's discount
Buyers profited by city's discount
2009-09-04
Info/Broken? - The housing recovery mirage
Discuss - The housing recovery mirage
The housing recovery mirage
2009-09-03
Info/Broken? - Bill introduced to extend and expand homebuyer tax credit
Discuss - Bill introduced to extend and expand homebuyer tax credit
Bill introduced to extend and expand homebuyer tax credit
2009-09-03
Info/Broken? - Boston area most-discounted neighborhoods, August update
Discuss - Boston area most-discounted neighborhoods, August update
Boston area most-discounted neighborhoods, August update
2009-09-02
Info/Broken? - Dynamic foreclosure map (1990-2008) and charts (1987-2008) for Massachusetts cities and towns
Discuss - Dynamic foreclosure map (1990-2008) and charts (1987-2008) for Massachusetts cities and towns
Dynamic foreclosure map (1990-2008) and charts (1987-2008) for Massachusetts cities and towns
2009-09-01
Info/Broken? - Goldman Sachs Wrong on Economic Recovery, Macro Hedge Funds Say
Discuss - Goldman Sachs Wrong on Economic Recovery, Macro Hedge Funds Say
Goldman Sachs Wrong on Economic Recovery, Macro Hedge Funds Say

News & Interesting Links Index
Recent | All
  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 10 11 13 6 6 3 4 3 4   6 2
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

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.