Posted on March 29, 2013
Economists are tripping all over themselves as they rush to boost their estimates on home price increases for 2013.
Basically, many are practically doubling their earlier predictions, pushing them into the 8 and even 9 percent range, The Wall Street Journal reports.
But even as prices show signs of getting nutty again, the mantra is this time it will be different.
Don’t worry, we won’t see a return of the runaway prices that marked the bubble years, things are different now, we are told.
Really? Just sounds like another throwaway line to me.
Certainly the supply of mortgage money is tighter now – no doc liar loans are a thing of the past
But no-doc liar loans didn’t drive prices up in perpetually-inflated Greater Boston. Unlike parts of Florida and other Sunbelt states, whole tracts of suburbs were not converted in foreclosure wastelands, whether it is Hingham or Medford we are talking about.
A dearth of new single-family home construction, stifling building restrictions in the towns and neighborhoods where most people want to live, and an influx of higher earning professionals have been the major factors driving prices up in the Boston area.
The Great Recession and the real estate slump was just a short breather in this very troubling trend.
Don’t believe me? Then tell me why I am wrong.(As opposed to name calling, which, as even my first grader knows, is different.) Why are things so different now?