Consumer confidence might bring more people to Boston
As more signs of economic stability present themselves to the American public, confidence over a brighter tomorrow increases significantly. Recently, two additional reports were released that highlight the growth seen across the nation in both the real estate sector and consumer spending.
According to the Commerce Department, Americans increased their spending in September 2012 at twice the rate that their income grew. This may seem strange, but it's a sign of confidence that the economy will continue to strengthen moving forward. The only downside, according to the Commerce Department, is that consumers saved less for the third straight month.
The source reports that consumer spending rose 0.8 percent in September from August, which follows a 0.5 percent uptick in August when compared to July. The surge in spending compares to personal income growth of 0.4 percent last month, an improvement from the 0.1 percent seen in August. The latest uptick in income is the best gain since March 2012, the source reports.
In the housing market, real estate in Boston also saw improvements. According to the Standard & Poor's Case-Shiller Home Price Index, values in Greater Boston increased in August 2012 as optimism over a recovering nation became more widespread. Data found average Boston area for-sale homes increased by 1.7 percent year-over-year - a significant uptick for a market that was once in disarray. In fact, across the nation, only one metro area - Seattle - saw a decline in home prices.
What's more, the S&P Index found that single-family housing starts are 43 percent ahead of last year's pace, and existing and new home sales are also up. These are both stellar signs that recovery and stability will continue in the Boston metro area into the new year, and that prospective homebuyers may be more inclined to invest in property soon.
With consumer spending on the rise, home values up and more people looking to buy in 2012, the future of Boston's housing market brings new optimism into the Hub. As a result of these indices, more businesses may look into relocating to the area and an even greater number of professionals might consider the Hub as a viable place to not only find work but also raise a family.