A stable U.S. economy translates into a better Boston housing market
After spending the bulk of your life submitting monthly payments to your landlord for rent, you will inevitably reach a point where owning your own home becomes an attractive idea. While you have stood on the sidelines for the past few years waiting for an economic turnaround, national economic growth will likely encourage you to jump back into the marketplace sooner rather than later. Inventory rates are down in the Hub, and real estate in Boston is primed to remain attractive to many prospective homebuyers well into 2013.
In fact, real estate assets managed for U.S. institutional tax-exempt investors grew 8.9 percent to $377 billion in 2012, while managed equity for those investors rose 7.3 percent to $293.4 billion, Pensions & Investments reports. This research was the first time the top real estate manager's combined assets was in positive territory since the financial crisis of 2008.
The uptick in managed assets reflects a more stable national housing market, as property values are on the rise. The strong housing market has helped boost economic growth in other sectors, and at the end of the summer, nearly every region of the U.S. saw improvements in both employment and housing value, The Boston Globe reports. The Fed said growth improved in 10 of its 12 regional banking districts from mid-August 2012 through September 2012.
What's more, the quarterly survey by the National Association for Business Economists predicts that home prices will rise by 1.5 percent in 2012 and 2.8 percent in 2013, which is slightly above what was forecasted in their May 2012 report. This news may encourage prospective homebuyers - who in the past may have hesitated to join the market - to consider investing in property in the Greater Boston area.
Boston real estate didn't suffer as badly as homes in many areas of the United States, but low inventory and unfavorable employment figures kept many in their houses. However, the median asking price in Boston rose 0.1 percent month-over-month, according to the Department of Numbers, which is the first increase in median price noted by the source since the time period between April 2012 and May 2012.
As the national economy and housing market improves, localized growth in the Hub will become more apparent, and buyers will grow fonder of investments in housing.