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Boston Area Real Estate Simultaneously Becomes More Valuable and Affordable

SANTA ANA, Calif.–First American Financial Corporation, a global provider of title insurance, settlement services and risk solutions for real estate transactions, released the November 2018 First American Real House Price Index (RHPI). Boston is signaling an improvement in affordability, according to the report.

The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.

November 2018 Real House Price Index

  • Real house prices increased 0.8 percent between October 2018 and November 2018.

  • Real house prices increased 15.3 percent year over year.

  • Consumer house-buying power, how much one can buy based on changes in income and interest rates, decreased 0.04 percent between October 2018 and November 2018 and declined 7.5 percent year over year.

  • Average household income has increased by 3.5 percent since November 2017 and 54.3 percent since January 2000.

  • Real house prices are 9.0 percent less expensive than in January 2000.