Boston’s residential market strengthens over summer
In residential sectors throughout the Eastern Seaboard, substantial improvement in home sales and prices have been observed during the past year. Specifically, Boston, Mass. experienced hikes in housing values and completed sales during the summer months.
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Boston home prices rose in July, according to the latest S&P/Case-Shiller Home Price Index released by S&P Dow Jones Indices, which showed the city’s reading up on a monthly and yearly basis. The organization’s most recent 20-City Composite pointed toward price appreciation of 1.4 percent between June and July, and a 6.3 percent uptick on an annual basis.
David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said the report’s findings are largely positive, but indicated a small slowdown in the rate of price growth was exhibited.
“Since April 2013, all 20 cities are up month to month; however, the monthly rates of price gains have declined,” Blitzer said. “More cities are experiencing slow gains each month than the previous month, suggesting that the rate of increase may have peaked.”
Activity remained strong statewide in August
While a minor hiccup in prices may have been experienced during July, the following month contained additional good news – albeit mixed figures.
On a year-over-year basis, both home sales and prices were up across the Bay State in August, however, monthly decreases were also evident, according to the Massachusetts Association of Realtors. A total of 5,568 single-family homes were sold statewide last month, representing an annual increase of more than 7 percent, but a monthly drop of 3 percent. The year-over-year increase marked the fifth-straight month that such a trend was observed.
Meanwhile, the industry organization reported that median prices for single-family houses experienced a similar pattern during August. Registering at $345,000, the state’s median sale price was up by nearly 9 percent annually, but down $5,000 from July’s amount. Last month was the 11th consecutive month in which yearly increases were recorded for Massachusetts.
Mixed numbers may be due to interest rates, inventory
Kimberly Allard-Moccia, president of MAR, noted that the recent figures might bode well for future conditions, but economic factors such as mortgage rates and inventory levels could place restrictions on the market. National rate averages moved up significantly over summer, which prompted some potential buyers to stay on the sidelines. And, as prices rose, prospective sellers decided to hold on to their properties, which strained the level of available homes for sale.
“August closings indicated buyers might have been reacting to the ongoing concern of rising interest rates,” Allard-Moccia said. “Buyer demand is steady, but folks are going to find it increasingly difficult to find a home if inventory doesn’t improve.”
If you’re one of those individuals looking for listed houses to purchase in Beantown, you may want to consider enlisting the help of Poli Mortgage Group. Our team of knowledgeable housing professionals can provide you with vital information that can facilitate your home buying process and help you save money. To date, we have written more than $11 billion in affordable residential lending, and are excited to add to that total. To learn more about our services, call us at 866-353-7654.