Economic stability and fortitude puts Boston in favorable light
The city of Boston has remained stable throughout the economic ups and downs of the past few years. While home values dipped and some residents lost their jobs, recovery has been swift and sustainable. Currently, real estate in Boston is showing renewed signs of growth, with national home values increasing approximately 2.1 percent from the first to second quarter of 2012, Forbes reports. On an annual basis, property values rose 0.2 percent from June 2011, which also marks the first annual increase in U.S. home values since 2007.
Additionally, the news source goes on to report that many real estate experts predict national home values will appreciate by 1.1 percent over the next year. There are other mixed signs in the state's housing market that suggest recovery, such as foreclosure petitions reaching their lowest level this year in June 2012. The Warren Group notes that more petitions were filed last month than in June 2011.
However, on the economic front, Boston continues to prove its strength in the nation. Fitch Rankings, which is in charge of evaluating the City of Boston, MA's general obligation (GO) bonds, recently upgraded these bonds from AA+ to AAA. This is a significant increase, and the upgrade indicates a stable outlook.
GO bonds are backed by the city's full faith and credit and unlimited taxing authority. The increase to AAA reflects notable efforts to address Boston's outstanding pension and OPEB liabilities, as well as its consistent maintenance of solid reserve levels throughout the recent recession. Boston remains a historically sound operating city, and its broad economic base serves as New England's center for commerce, culture and tourism.
Furthermore, homebuyers remain interested in Boston, as unemployment rates remain below average and have trended below state and national averages in each of the last five years. Currently, unemployment has dropped to 5.5 percent in April 2012 compared to 6.6 percent the previous year.
What's more, city officials predict positive operating results to continue in fiscal 2012, indicating that real estate growth may not be far behind. Homebuyers who are considering relocation to the Hub may be entering the city at a good time, as job growth and housing stability look to increase as the rest of 2012 moves forward. When you begin to plan your search for the home of your dreams in Boston, make sure you consider all of the options available to you, so you can find the ideal home for your needs.