ratio in July was at 99% in Metro-Boston
As it pertains to the greater State of Massachusetts
and even more so the closer towards Boston we study, the housing
gains have only continued in a major way throughout the summer
months. With what was estimated to slow after the rampant Spring
Market, perhaps the most active in our history, the summer has
shown the real estate market to keep this momentum and thrive due
to it being a unique time to enter the market for both buyers and
sellers. For buyers, interest rates remain lower than they have
been in years past and although prices are rising, they have not
quite yet peaked. For sellers, the pent-up demand has given them a
pool of buyers to choose from who are often willing and able to pay
in cash at the asking price or even exceeding it.
With Julys numbers being the most complete monthly
numbers of data available, it becomes clear that July saw the
median sales prices for a home in the Boston-metro region reach
$370,900. This is an astonishing breakthrough given the fact that
this is just 2% less than the median figure of $379,900 achieved in
2005 during the housing boom. Moreover, the average sale-to-list
price ratio in July was at 99%, displaying just how badly buyers
are hoping to purchase property by reaching for the full asking
price if they are able to. 60.6% of all of Julys sales realized a
net gain for the sellers with only 24.6% of them resulting in a
loss on transactions for the sellers.
One massive reason leading to such strong sales
numbers is that rents still remain at drastically high levels. In
many circumstances, it actually becomes more advantageous for an
individual to buy and pay off a mortgage given the lower rates than
it is to rent and pay a higher monthly fee. The median monthly
rents recorded in July in Boston and its entire surrounding
metro-area was $1,997, up by 4% over the $1,920 median realized in
July of 2012. With a 10% downpayment on a median priced property
today in this area, one should only expect to pay around $1,700 per
month in mortgage principal and interest for a 30-year
mortgage.
Looking to some specific areas, the following results
were released for July:
-
Bostons median home values are at $395,800, up 12.6%
year-over-year -
Newtons median home values are at $745,200, an 8.4
percent year-over-year increase -
Cambridges median home values are at $496,400, a 14.4%
year-over-year increase -
Lowells median home values are at $194,100, a 9.7%
increase year-over-year -
Brockton had median home values at $176,600, a 7.4%
year-over-year improvement
More Information: Boston Business
Journal