Proposals slowing down

I have noticed the slow down too. Banker and Tradesman reported that while apt rents are still overall up, certain categories are falling. Specifically small apartments in older buildings. This is good. It is an indication that all the new construction is working - it is pulling young professionals out of older housing stock. The slow down may be deeper than this because the reported data isn't real - it doesn't reflect discounts that large apartment communities may be offering. NYTimes reported last year that, while on paper rents are still rising across all categories, in reality high end rents have declined, but through discounts, not rent reductions.

However, the bigger trend is that, while on the ground people feel like we are in a boom, if you listen to financial radio, the experts are all predicting doom. (Or at least a correction). Just looking at my friends luck buying places in Somerville/Medford recently, the inventory is as low as ever, but the real prices are declining a little from last year. The crazy bidding wars have declined and the Chinese investors lining up around the block for open houses just aren't happening anymore. All the people at open houses now are families looking to actually live in the house. If your looking for the trends look what the Chinese investors are doing cuz they are probably pretty smart.
 

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