The opportunity to invest in real estate in the Boston area has never been better. On a macro scale, indicators are pointing to a housing recovery and many experts agree that we are poised for a strong turn-around in 2013. On a local level, the Massachusetts job market has stayed strong and new reports suggest strong consumer confidence for residents. The introduction of several new casinos in Massachusetts will have significant impact on the real estate market by bringing thousands of jobs and millions of dollars pooling into the state.
Housing is improving in all major cities around the country. National home prices have snapped out of a downtrend. The 20-City Case-Shiller taken from the St. Louis Fed shows turnaround and an evident bottom.
Home prices of the 20 major US cities | St. Louis Federal Reserve
Mortgage rates have continued to drop, however Bloomberg experts predict they will not go any lower, in fact they will move back up to 4% by the end of the year. Those factors with an increase in rental asking prices will stimulate home buyers to take action in 2013.
Boston has the right formula for a full-fledged real estate recovery:
• Boston residents report significantly higher income compared to national averages.
• Massachusetts bucked the high national unemployment rate during the recession. The current unemployment rate is considerably under the national average.
• Crime rate in the city has dropped by over 20% since the beginning of 2012 according to the Boston Police Department.
A recent report by The Warren Group that personal bankruptcy filings in Massachusetts decreased more than 18 percent in 2012 from a year earlier should further increase consumer confidence in the state.