Boston's housing market grows more competitive in 2012

The number of homes for sale in Boston has dropped from a year ago, which has led to an increase in competition for available properties. This new housing activity has also pushed up long-depressed prices, and some prospective buyers have found it difficult to find properties within their price ranges.

New figures reported by The Boston Globe show that the region's inventory of single-family homes, condominiums and townhouses dropped by over 37 percent in July 2012 compared to the previous month, and the median price rose to $363,000 last month. Home sales in Boston also rose 9.3 percent in July.

Additionally, Globe contributor Scott Van Voorhis reports that new home construction inside of interstate 495 has struggled for decades, which only serves to further inflate home values.

Whether you are relocating to Boston for professional purposes or starting a new life across the country, you will find a bidding war for property in the Hub. Therefore, to find the greatest deal, you might need to look in neighborhoods that are up and coming and not in the downtown region of the city.