WORCESTER 508-471-3018
Metro West 508-709-0024

Residential real estate prices nowhere near bubble

Anyone trying to buy a home in Massachusetts may have noticed that residential real estate prices are up from recent years, and people trying to sell their homes may be encouraged by rising listing prices. Some people may fear that rising prices are setting local economies up for the fallout of another market crash. Others may have confidence that the positive trend in home prices is a sign that the country is making economic progress.

An expert on residential real estate has offered an interesting analysis on whether current housing market trends will lead to another bursting real estate bubble. He explains that a housing market and its likelihood to burst should be judged based on fundamental value, which involves considering the economic factors of supply, demand and speculation on future trends. Noting that dangerous markets develop when prices rise and people rush to get into the market leading to an extreme increase in demand for properties, the expert claims that current prices and demands are well within the safe limits of the national markets' fundamental values.

There are exceptions to this trend. For example, several residential real estate markets in California are experiencing housing prices higher than their fundamental values. Fortunately for buyers here in Worcester, the expert has not identified any Massachusetts communities as suffering such a fate.

According to this story, Boston-area homes are currently undervalued, which may present some exciting residential real estate opportunities for new buyers. Staying informed of local and national housing market trends can help buyers make confident decisions regarding real estate and can prevent them from being taken advantage of by sellers who have overvalued their residential properties.

Source: Forbes, "Trulia Bubble Watch: Today's Rising Home Prices Are A Rebound, NOT A Bubble," Jed Kolco, May 14, 2013

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us Today To Learn More

The skilled attorneys at SederLaw stand ready to handle even your most difficult legal issues. Turn to us for skilled representation to help you accomplish your legal goals.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

An Impressive Track Record
Of Achievement In The Law


Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-709-0024
Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions

Metro West Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions