It's a buyer's market in Boston, again
The Bay state has seen its real estate values rise and fall almost without rhyme or reason, but the future looks bright for the homes for sale in Boston. While for-sale properties on Nantucket island have long stood stable in the face of adversity, The Warren Group recently reported that the area's median home price fell from 1.1 million in June 2011 to $925,000 in June 2012.
Additionally, two foreclosures were also listed in Nantucket for June 2012, and homes worth $1 million and up have fallen by more than 20 percent so far in 2012. This sharp decline could be the result of many families choosing to relocate to the Hub, rather than beach communities.
After years in which renting was the more affordable option for Boston residents, the balance has shifted back to purchasing homes. Asking rents have risen 10.3 percent on a year-over-year basis in June 2012, which has driven many newcomers and current residents to consider the benefit of investing in property while the market remains relatively unstable.
On average, renters who buy a home in the Greater Boston area reach the break-even point after a little more than four years, while it takes homebuyers considerably less in certain communities across the state.
Homebuyers in Walpole can break even after just 3.3 years, new owners in Quincy at 3.5 years, in Holliston it takes 3.7 years and in North Andover right around 4 years.
With costs remaining low, buyers may find they have more options available to them on the market than they originally thought. This could persuade an even greater number of people to consider investing in property, rather than renting it from third-party owners. Of course, the time that it takes to break even depends on the community, so buyers should be aware of their financial standings before they invest in homes across the city and surrounding neighborhoods.
While it is difficult to blame the declining Nantucket home median price on a more favorable housing market near the state's capital, it's safe to assume more buyers will enter Boston than renters, which is a good sign. When looking to move to a community with a resurging real estate market, it may be wise to consider Boston as the ideal location.