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Bubble market comeback?

Posted by Scott Van Voorhis April 12, 2013 07:12 AM

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Greater Boston is the seventh "frothiest" real estate market in the country, a new report out this morning finds.

The gap between Boston area prices, now on the rise again, and median incomes, which have been static, is six percent higher now than it was back in 2000, according to Redfin.

Meanwhile, nearly three quarters of all homes sold in the Boston area in March had more than one offer, according to Redfin, citing deals it has been involved in, while 11 percent were flips, having changed hands in prior 18 months.

There's also evidence that more thinly financed deals are on the rise as well, with a growing number of homes sold with to buyers with just 3 or 5 percent down, Redfin claims.

(Of course, after throwing out all this tantalizing info, Redfin puts in the now standard caveat that no, we are not in a bubble yet - make of it what you will.)

So how do we stack up nationally? Well, No. 7 makes us one of the bubbliest markets in the country, though a step down from some of the even crazier stats coming out of Washington, San Fransisco and Los Angeles.

The gap between home prices and incomes is now 26 percent higher in Washington and Los Angeles than it was back in 2000, while all three markets are seeing multiple offers on more than 90 percent of properties sold, Redfin contends, citing transactions it has been involved with.

What's your take? Are we in the early stages of yet another real estate bubble here in Greater Boston?

This blog is not written or edited by or the Boston Globe.
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Scott Van Voorhis is a freelance writer who specializes in real estate and business issues.

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