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One of today’s top stories on CNN.com is titled 5 Bubble Proof Markets. Guess who was in the top 5? Yup, good ole’ Boston. In pretty fine company too with the top 5 including San Francisco, NYC, Seattle, and Los Angeles.Â
The article isn’t guaranteeing that we won’t see some short-term downward swings in these markets, but according to Todd Sinai, an associate professor of real estate at the Wharton School and coauthor of a recently released study called “Superstar Cities” the long-term trends are “so strongly upward that if you’re willing to buy and hold, it’s a good strategy.”
Below are some of the criteria for a bubble-proof city:
- Limits on the supply of new land and buildings
- Trends in household income
The article states that “prices are likely to keep climbing in cities where poor and middle-class households are being nudged out by rich ones. The phenomenon skews prices higher than the national average because more dollars are chasing fewer properties.”
Whether this is a good or bad thing for us in general I don’t know, but I do know that it’s good news for those of you who are still a bit tentative about entering this real estate market. I encourage you to read the article which I have linked above and feel free to contact me or comment to discuss this more!
