Continued success in the Bay State affects the Boston housing market
Real estate in Boston fluctuates often. In fact, according to Boston Globe contributor Scott Van Voorhis, Greater Boston is a bubble-prone market, where prices can quickly get out of hand. Voorhis also notes that new home construction is minimal, while career opportunities are vast, which creates an imbalance that affects every aspect of city life. The fact of the matter is high-paying jobs attract top talent to the Greater Boston area, and those job seekers have more expendable cash they can use to outbid the average American looking for a home for sale in the city.
Nevertheless, the housing market in the Hub improved in August 2012. The sales of both Massachusetts single-family homes and condominiums rose last month for the seventh straight month year-over-year, according to the Warren Group.
Approximately 5,118 single-family homes were sold in the Bay State last month - a year-over-year uptick of 20 percent. The report marks the second time sales have surpassed the 5,000 mark in 2012 and shows Bay State real estate is in high demand.
"One more month of strong home sales confirm speculation that the housing market recovery is underway," Warren Group Chief Executive Timothy M. Warren Jr. said in a statement. "Even though we are comparing to a slow August last year, the consistent sales volume of 4,000 to 5,000 in the past few months is a promising indicator."
Over the course of August 2012, the median price of single-family homes in the Bay State increased 1.6 percent to $310,000, the Warren Group reports. August also marked the third straight month that the median price exceeded $300,000.
Homebuyers who have considered purchasing property in the Bay State, especially in the Greater Boston area, should take note of rising home-closing rates. With properties claimed more regularly in the city, fewer homes may be available down the line. This concept is supported by Voorhis, who touched on the recent trends in Boston real estate and how they could affect future home transactions.
It may seem unrelated, but the more successful local businesses become, the higher property price tags will reach, as job seekers move to areas with career opportunities, and housing inventories fall. Make sure you take the steps to purchase a home in Boston sooner rather than later if you want to have several options to choose from.