GOOD NEWS FOR BOSTON/MASSACHUSETTS REAL ESTATE MARKETS!
Boston Real Estate Market in 2018
The housing market in Metro Boston is back on track and looking healthy for 2018. A number of factors are driving this recent growth. The prediction is that prices will rise in 2018 as they will in most of the U.S. housing market.
The reason for the unusual late season surge is due to a big pent up demand from homebuyers and plenty of foreign real estate investors. Low mortgage rates, a strong economy, and the inventory of homes for sale is bolstering sales.
According to Zillow, home prices are forecasted to climb another 5% in 2018.
Home prices grew over 3% over the last 12 months in Metro Boston, and 7% in the city of Boston itself. NAR reports the average home price was $633,000. Zillow has the average detached house price at $544,000.
.This chart below courtesy of Realtor.com shows home price growth in Boston’s largest communities.
| Town | Avg Home Prices | Average Home Price 2014 | Forecast Price end of 2108 |
| Newton | $895,200 | $723,000 | $978,000 |
| Cambridge | $669,200 | $515,000 | $746,000 |
| Somerville | $559,200 | $427,000 | $622,000 |
| Boston | $504,200 | $406,000 | $584,000 |
| Quincy | $393,600 | $330,000 | $431,000 |
| Lynn | $276,900 | $227,000 | $335,000 |
| Lowell | $240,800 | $200,000 | $267,000 |
| Brockton | $232,600 | $186,000 | $272,000 |
| Lawrence | $218,000 | $176,000 | $254,000 |
Boston Home Prices Not As Bad As California
Many claim that Boston's real estate is extremely unaffordable, but it's far more affordable than Los Angeles, Washington DC and New York City. Compared to the San Francisco area and L.A. home prices, Boston’s real estate looks very good.
Investors might want to check out properties outside of Boston, such as Easton, Lawrence, Worcester, Lynn, Salem, Stoughton, Framingham, Brockton, and Dedham. They’re nice communities and there’s plenty of property to build on.
What Supports the Boston area Economy?
Boston has a strong regional economy bolstered by transportation, tourism, financial services, and increasingly venture capital. Boston is becoming the Silicon Valley of the north with major influx of funding for startups in FinTech, MedTech and EduTech. Ultimately, all decisions to buy a home in Boston relate back to the US economy, the housing market, and the Massachusetts economy.
Boston's Powerful Economic Engine
Boston’s economy is a power house yet restrictions on immigration will retard its output. Retiring baby-boomers (although many are continuing to work) and a full employment situation mean growth will be constrained by a lack of workers, including skilled workers from other countries.
It’s good news for workers in other cities and states who need jobs. If you can find somewhere to live in Boston, you should have little trouble finding a great job.
Employment & Wages in MA Will Rise in 2018
Good news for workers is that wages are expected to grow 4% which will result in higher home prices. The unemployment rate will fall to 3.7%. Higher costs for wood will push home prices up further. A good strategy might be to buy this year because all factors point upward.
The real estate market et al, is expected to grow 2.2%. All of this will heat up the Boston market, making housing more unaffordable. And just like California, workers will be willing to relocate further from the city to buy what they can afford. And millennials do want to buy homes or condos with their growing wages. With the Boston housing market looking so good for 2018, and with employment/and economic strength so positive, it is time to buy this year.