Boston real estate prices look to recover
Aug 2011 03

Based on the recent history of home sale prices, inventory level, unemployment rate, and number of “past-due” loans, it looks as though the Greater Boston real estate market is poised to recover over the coming months.

That’s one conclusion you can reach after reading the Wall Street Journal article, Sliding Sales Listings Lift Housing Outlook.

Past due loans were under 5% in Quarter 1 2007, rising to over 10% in Quarter 1 2010. It is around 8.7%, now.

Average home values dropped from around $370,000 in January 2007 to $320,000 in June 2010, pretty much steady for the past three years between 2008 and 2011.

Boston does much better than other metropolitan areas when it comes to inventory levels, year-on-year price changes (decreases), and unemployment rates.

Inventory level dropped almost 3% from a year ago, which means either more people are selling their homes or fewer people are listing their homes for sale. Prices have decreased by 3.6% this year, whereas other cities had drops from 3.9%-11.5% or higher.

The unemployment rate in the Greater Boston area is 7.4%, which is far lower than other major metropolitan areas, including Atlanta (10%), Charlotte (10.8%), and Denver (9.3%).

With a good economy comes opportunity, for both buyers and sellers of Boston real estate.

Image above from the Wall Street Journal, courtesy of Zillow.

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