Posted on Oct. 25th, 2016
The real estate market in the Boston area has been gaining in 2016. Massachusetts real estate has skyrocketed above the national average. In Boston the median home price in the first quarter of 2016, was $378,500 while the national average was $215,767. This is appealing for Boston investors and for homeowners as they will make more money on home sales in the Boston area. Home appreciation rates are very competitive in Boston which should continue through the rest of 2016.
Boston Real Estate Statistics
• Median List price $759,000
• Median sale $500,000
• Median list Sq. Ft $689
• Median list change up 47.6% from last year
• Median sale Sq. Ft $500
• Median sale change from last year up 7.3%
• Foreclosures 692
• Average offers 2.6
• Average down payment 14.60%
Home Appreciation 2016
Boston real estate in 2016 has seen some mild gains in appreciation. Rates of 1.0% were seen in the first quarter of 2016. The national average was 6.1%. In the last three years the appreciation rate has been 13.9% for the Boston area. For those that want to invest in the Boston real estate market here’s how the appreciation rates have been in the past years:
• Homes bought in the Boston area one year ago have appreciated by an average of $10,187. The national average for this period was $15,781.
• Homes bought in the Boston area three years ago have appreciated by an average of $64,281. The national average was $49,356.
• Homes bought in the Boston area five years ago have appreciated by an average of $81,064. The national average was $68,727.
• Homes bought in the Boston area seven years ago have appreciated by an average of $129,577. The national average was $59,758.
• Homes bought in the Boston area nine years ago have appreciated by an average of $40,273. The national average was $16,435.
This shows that Boston real estate has begun to move ahead of the national average after three years where there were gains of $64,281. The real advantage for homeowners in Boston has been after seven years where the equity gains reached their best potential. Principle payments and price appreciation has driven equity growth since the recession.
In June there were 779 foreclosures or in the stages of foreclosure. Despite this, RealtyTrac says that the number of foreclosures was nine percent lower than the previous month and it was eight percent lower than in 2015 at that same time.
Boston Area is A Good Area for Equity Gains and Home Price Increases
For those that want home equity gains and home price increases, the Boston area is a good bet. Affordability in the area is lower than the national average which benefits investors and homeowners. Job growth and positive employment make the area attractive for those seeking jobs and homes for their families. Unemployment in Boston 4.0% which is better than the national average. New construction is continuing in Boston which makes investing in Boston real estate appealing. Construction is currently 27.7% above the longer term average. The second half of 2016 should be a good one for the Boston real estate market.