Now That The Election Is Over

MetroBoston Publication Date November 14, 2012
By Attorney George Warshaw

Thank goodness. No more ads by candidates ripping each other to shreds. But now, what’s ahead for the real estate economy?

Predictions that real estate will lead us back in the recovery quickly turned to gloom a day after the election. “The recession is upon us again! The sky is falling!”

I must say that I am so sick of hearing good news one day and Armageddon the next.

I’m taking a simpler, unscientific approach to understanding the future of the market. If you want to know what the weather will be, stick your head out the window.

In my view, this country is in a credit crisis. I ask three recovery questions: Is individual credit card debt being reduced? Are foreclosures slowing? Is consumer confidence positive, negative or indifferent?

A positive answer to all three questions means to me that people are recovering and will spend money again soon. People spending money generally means that more people get employed to meet demand.

Perhaps my view is simplistic, but right now the real estate market is still moving forward. Prices have increased. Rents are rising. Homes and condos for sale are in shorter supply. New home construction is up. Banks want to and need to make loans.

All very positive signs. That’s my view! © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.