since 2005
The real estate market back in 2005 was about the time
when the last housing boom took place. In our current marketplace,
many comparisons are drawn between 2013 and 2005. This can be drawn
due to todays industry having triumphantly climbed out from the
economic recession and subsequent housing crash of recent years.
While todays market has been defined by a shortage of inventory, it
has also been met with increased home sales for what is available,
soaring prices, and historically low mortgage rates.
However, as the months have gone on during this
calendar year, the market has remained strong yet some factors have
slightly shifted. Mortgage rates have pushed up, and as the fear of
them rising any further has caught on amongst the prospective home
buying populace, this has only resulted in home sales and prices
reaching even newer heights.
The Warren Group has just released some valuable data
which highlights that there have been an astonishing 27 communities
within Eastern Massachusetts alone that have surpassed their median
prices for single-family homes acquired back in 2005. With the
demand for property unsurprisingly strong in Boston itself, it was
here where the biggest differential in prices has been recorded.
The neighborhoods in Boston garnering the largest price increases
in this eight year span have been the Back Bay, Beacon Hill, South
End, North End, West End, Kenmore Square, and the Boston
Waterfront.
While not every location in the State realized such
massive improvements over this longer time period, Massachusetts as
a whole has just displayed a 14% annual rise in single-family home
sales over this past August. A total of 5,925 sales accounted for
this, up from the 5,204 successful single-family home transactions
during August of 2012. This, as it was later discovered, was the
highest number for any month of August since 2005. Furthermore,
year-to-date sales across the Bay State are up by 5% over 2012 to
33,523 from 31,851.
When looking to prices, the optimism only continues as
single-familys are trading for 10.6% more on a year-over-year scale
during this past August up to $340,000 from $307,500 from a year
prior. This marks the eleventh consecutive month where there have
been median price increases. Finally, on a year-to-date basis,
prices are also up just as sales were, this time by 12% to $325,000
from $290,000 in 2012.
To see what were the Top 27 performing areas of
Eastern Massachusetts that have experienced higher median prices
for single-family homes than back in 2005, please see the table
below, acquired from The Warren Group:
Neighborhood 2005 2013 % Change
|
Boston |
$1,351,250 |
$2,203,500 |
63.07% |
|
Charlestown |
$565,000 |
$759,000 |
34.34% |
|
Provincetown |
$649,000 |
$861,875 |
32.80% |
|
Cambridge |
$653,500 |
$858,300 |
31.34% |
|
Allston |
$485,750 |
$600,000 |
23.52% |
|
South Boston |
$409,000 |
$504,750 |
23.41% |
|
Somerville |
$448,500 |
$529,500 |
18.06% |
|
Jamaica Plain |
$500,000 |
$590,000 |
18.00% |
|
Concord |
$725,000 |
$843,250 |
16.31% |
|
Needham |
$647,688 |
$752,500 |
16.18% |
|
Newton |
$779,000 |
$890,000 |
14.25% |
|
Lexington |
$712,911 |
$810,000 |
13.62% |
|
Bedford |
$520,500 |
$590,000 |
13.35% |
|
Brookline |
$1,120,000 |
$1,268,000 |
13.21% |
|
Winchester |
$732,200 |
$820,000 |
11.99% |
|
Belmont |
$702,000 |
$782,500 |
11.47% |
|
Wellesley |
$950,000 |
$1,050,000 |
10.53% |
|
Roslindale |
$389,000 |
$418,000 |
7.46% |
|
Arlington |
$508,000 |
$545,500 |
7.38% |
|
Cohasset |
$780,000 |
$836,000 |
7.18% |
|
Newburyport |
$452,500 |
$477,500 |
5.52% |
|
Reading |
$441,250 |
$465,500 |
5.50% |
|
Norwell |
$551,000 |
$573,200 |
4.03% |
|
Brighton |
$500,000 |
$517,500 |
3.50% |
|
Westwood |
$600,000 |
$610,000 |
1.67% |
|
Weston |
$1,225,000 |
$1,244,630 |
1.60% |
|
Wrentham |
$399,950 |
$402,500 |
0.64% |
More Information: Boston Business
Journal