Boston Housing Market Comes Alive
April 2019 Update: Home sales and prices in Boston rebounded in February according to GBAR. The 586 homes sold in February was the 5th highest total for the month ever. That’s a jump of 23% in home sales. And condos enjoyed the 4th best February on record.
Boston may have one of the more balanced housing markets in the US, but it’s pricing characteristics are similar to cities in Florida and California. The Massachussetts economy and housing market should be bolstered by the recent economic forecast for 2019/2020.
Average prices of a home in city of Boston 6.7% from last February to $577,500 (+ $46,500). Average price of a condo came in at $530,000 which is down 2.9% or $16,000 from last February. Condo active inventory has grown substantially at 23% YoY.
According to Realtor.com, the average listings price for a home in Boston is $723,000 and the median sold price came in at $630,000. Currently, there are only 1630 homes for sale.
Hot in Boston for Single Detached Homes
Boston rated as one of the hottest growing US markets last month. In greater metro Boston, single detached home prices rose 4.5% to $643,000 from $615,450 in February. Condo prices fell 6.6% to $607,000 from $650,000. DOM market for all types of home is rising. Some districts showed stronger growth than others.
In Metrowest, the median single-family home price jumped 14.3% to $629,900 from $560,000 last February.
In Southern Norfolk County, single-family home prices rose almost 21% from last February’s prices ($470,000 $389,000). And in central Middlesex County it was a 19.3% decrease in single detached prices ($617,500 from $765,037 last February).
The higher sales activity and prices show Boston homebuyers aren’t afraid to buy at higher prices and were waiting for the right time to buy. A NAR report suggests right now may be the ideal time to buy a home or condo.
March sales aren’t as yet, but they should show an upward trend. The recent US economy report and forecast should bolster buyer intent and raise prices through this summer.
GBAR Boston Home and Condo Sales Report
Zillow Boston Market Report
Zillow rates the Boston housing market as cool. Even within that estimate they believe average house prices will rise 4.1% over this year. Average rent prices are alread trending upward this year (average $1208/mo).
zillow boston home prices
In South Boston, Zillow expects home prices will only grow 2% this year.
Please do share this report on Boston’s housing Market
Massachusetts Housing Market Report
Statewide, house sales rose 9.1% while houses for sale dropped by 9.5%. Condo sales rose 7.2% while availability rose by 5.6%. Home prices rose 7.7% while condo prices fell 3.1%.
This chart below courtesy of Realtor.com shows home price growth in Boston’s largest communities.
|Town||Avg Home Prices||Average Home Price 2014||Forecasted Price end of 2018|
Take a good look at this heatmap of rental prices, and it might give you a good idea of home prices as well. The further you go from Downtown Boston, the more likely you are to find affordable homes. Be forwarned of Boston’s congested, time consuming commutes to which I can attest are as bad as any.
Boston Home Prices Not all That Severe Compared to California
Investors might want to review properties outside of Boston city such as Easton, Lawrence, Worcester, Lynn, Salem, Stoughton, Framingham, Brockton, and Dedham. They’re nice communities and there’s plenty of property to build on.
However, it looks as though home prices are about to rise in Boston. So the questions: “should I buy a house?” or “should I sell my house” in Boston aren’t easy to answer. To help with a sell decision, see the post on selling tips and on best renovation for ROI.
What Supports the Boston area Economy?
Boston has a strong regional economy bolstered by transportation, tourism, financial services, and increasingly venture capital. Boston is becoming the Silicon Valley of the north with major influx of funding for startups in FinTech, MedTech and EduTech. Ultimately, all decisions to buy a home in Boston relate back to the US economy, US housing market, and the Massachusetts economy.
Boston’s Powerful Economic Engine
Boston’s economy is a power house yet restrictions on immigration will retard its output. Retiring babyboomers (although many are continuing to work) and a full employment situation mean growth will be constrained by a lack of workers, including skilled workers from other countries.
It’s good news for workers in other cities and states who need jobs. If you can find somewhere to live in Boston, you should have little trouble finding a great job.
Employment and Wages in Massachusetts Will Rise in 2018
Good news for workers is that wages are expected to grow 4% which will result in higher home prices. The unemployment rate will fall to 3.7%. Higher costs for wood will push home prices up further. A good strategy might be to buy soon because all factors point upward.
The real estate market et al, is expected to grow 2.2%. All of this will heat up the Boston market making housing more unaffordable. And just like California, workers will be willing to relocate further from the city to buy what they can afford. And Millennials do want to buy homes or condos with their growing wages.
Finding a Home In Boston’s Many Neighborhoods
If you’re thinking of a move to Boston, you’ll want to scout out the most affordable neighborhood for you and your family. Prices vary a great deal. NAR reports these recent prices:
|Area||Units For Sale||Units For Rent||Median
|Back Bay East||85||148||$1,550,000|
|Back Bay West||52||118||$1,399,000|
There you have a good look at the State of Massachusetts and the Boston Housing market in 2019/2020.
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