National metrics show housing recovery may be likely in cities like Boston
In the United States, signs of a recovering housing market and strong corporate earnings have influenced recent movement in the stock market. Real estate in Boston, MA, has also experienced upticks in housing starts and values, which may encourage additional buyers to enter the marketplace.
According to The Boston Globe, the U.S. government reported that builders broke ground in June 2012 on the most new homes and apartments in the past four years. The 6.9 percent month-over-month increase brought housing starts to their highest point since October 2008, which indicates the current real estate landscape could be gearing up from its triumphant stabilization. Additionally, the Standard & Poor's 500 index, which measures U.S. equities, rose 9.11 points, or 0.7 percent, to 1,372.78.
However, Americans purchased fewer homes in June 2012 than in May 2012, which indicates the economy is still weak, and housing recovery will remain a slow-moving process. Sales of previously occupied homes fell 5.4 percent in June 2012 to a seasonally adjusted rate of 4.37 million properties. This metric shows the fewest sales since October 2011, and real estate experts highlight this category as one that needs to improve before overall recovery can occur.
In general, sales are up 4.5 percent from the previous year, but the annual sales pace is below the 6 million mark that economists consider healthy in the marketplace. All in all, even with a drop in completed resales, gains in new residential construction and higher builder confidence are encouraging signs that may give greater insight into the state of the U.S. housing market today.
"It is only one month and the rest of the housing indicators have all continued to show improvement," said Jennifer Lee, a senior economist at BMO Capital Markets, to The Boston Globe. "Let's hope this June decline is a blip."
What's more, the median home price across the nation rose 5 percent to $189,400, the news source reports. Prospective homebuyers considering for-sale properties in the Boston area may want to act fast before the market recovers completely. With rising values and sales rates, the affordable homes for sale may be claimed by active shoppers more quickly than in the past four years. Survey the available homes in the Greater Boston area, and speak with a real estate agent about the options you have in today's marketplace.