Tuesday, April 1, 2014
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Are we starting another real estate bubble? My sense is probably yes, but I think this one may end differently than the last time. There are a lot of projects active in Boston right now (not so much in Quincy--more on that topic later this week if I remember). The "luxury" residential boom is going strong, but an article in today's Globe pointed to friction at the BRA. In the Menino administration projects might have gotten a faster response from the city. If the development pipeline gets clogged, then there could be a slowdown of construction permits and starts in the city.
I'm wondering when interest rates will start to rise. My guess is not for a few years. If they do rise, the should rise in the context of true bubblemania--not perceived hints of shadows of gossip of threats of inflation that exceeds 2%.
Those people with fixed rate mortgages will be somewhat indifferent to this turn of events. Unless we lose our jobs.