Massachusetts Market Questions in the Coming Years
Hey everybody,
This is only my first forum post. I've learned a lot in the past year. I did 3 flips in MA, and also got my real estate license. Not a bad time to do either!
Anyways, I am always trying to look one step ahead. I know the Fed is promising very low interests rates over the next 3 or so years. I know the government does NOT want any sort of depression.
In MA right now, (I'm aware it is the slow season for the RE market) there is simply not a lot of options for buyers. This is making it a sellers market, especially in the central part of the state where I am located.
So, with low interest rates, buyers can spend more on a home, and have a lower monthly payment, and the Fed wants to continue inflation.
BUT, unemployment is record high, Consumer debt is higher than 2007/2008, (our countries debt is higher now too so it may not be the best statistic, but either way, it's pretty high). Which says to me, what sort of price increases in housing can people really afford?
On one hand, prices are going up, rates are low, things are great. On the other hand, debt is high and many people are collecting unemployment and stimulus. Have we actually felt the effects of Covid?
I guess my exact questions are: 1) How much higher can prices go in MA? 2) What happens when prices come down? Is is a steep drop in prices? Or is it more of a flattening out? 3) What do you think are the longterm effects of the current market situation?