A growing economy bodes well for Boston real estate
Real estate in Boston is in greater demand as new signs of an economic recovery become widespread. In the Bay State, prospective homebuyers are presented with opportunities to invest in for-sale properties, and many first-time buyers are seizing the moment, especially with rising rents and rock-bottom interest rates. The current state of the housing market in Massachusetts has created a new, value-oriented population of homebuyers who don't hesitate to look beyond the city's higher-end ZIP codes for good deals on houses.
Economic growth in the July 2012 to September 2012 quarter rose slightly, but was not great enough to spur even greater employment options for job seekers and underemployed professionals. The expansion of the U.S. economy increased to a 2 percent annual rate from 1.3 percent in the April 2012 to June 2012 quarter, according to The Boston Globe. The uptick was led by more consumer and government spending.
"For the average American, I don't think changes in quarterly GDP make a big different in their percent of the economy, Pew Research Center President Andrew Kohut said to The Boston Globe. "It's certainly good for the president that the number is not bad because that would resonate."
In addition to overall economic growth, consumer spending - a big indicator of recovery - rose at an annual rate of 2 percent in the July 2012 to September 2012 quarter - up from 1.5 percent in the previous quarter. A new survey conducted by the University of Michigan found consumer confidence increased to its highest level in five years in the third quarter of 2012, which suggests spending may continue moving forward.
Americans spent more on cards last quarter and added nearly 0.2 percent to overall growth. Housing added to growth for the sixth straight quarter, the news source reports.
"Those are the sectors that reflect growing consumer confidence and greater lending," U.S. economist for AllianceBernstein Joseph Carson said to the news source.
Prospective homebuyers who have waited several months or years to enter the market should make their move soon. With the U.S. economy spurring change with all cylinders, consumer confidence will increase, and more people will look to invest in bigger assets. This could limit the pool of available for-sale property and relinquish a lengthy list of in-demand homes from the market.