Boston real estate seems to be showing signs of stabilization after the economic struggles faced over the past year as a result of the economic recession of 2008. Despite slight declines during the fourth quarter of 2009, the Boston real estate market fared much better that the national market and posted greater increases as well. Home sales have increased and housing values are on their way up, but real estate experts are also wary that Boston may not be out of the woods yet, given the inconsistent improvements. Nevertheless, many local realtors and experts expect the Boston real estate market to make a significant recovery in the coming months and activity begins to pick up and prices begin to rise again.
According to the Boston Globe, the Boston real estate market suffered from a slight decline in home values during the months of September and October 2009. However, the declines were very small and were to be expected since historical data trends have shown a dip in the Boston real estate during the beginning of the winter season. Furthermore, real estate experts believe that the declines were to small to suggest that the market would continue to decline. Many people believe that the real estate in Boston has hit bottom, so the only direction it can go in is up. Despite the slight decline, home values are still about 6 percent above that of March of 2009, when the home values reached the lowest levels seen since September of 2005. Many realtors are hopeful that the federal tax credit will play a major role in spurring the growth of the real estate market in Boston and promote a speedy recovery.
dBusiness News has also reported the strength and optimistic views of the Boston real estate market, given its performance above that of the national average. Boston has shown 17.2 percent increase in median sales prices from about $393,000 in December of 2008 to about $461,000 in December of 2009. Other positive signs seen in the Boston real estate are the 4 percent increase in year-over-year home sales, as well as an 18.7 percent decline in unsold home inventory, leaving it at only a 6 month supply. Many expect the market to show significant signs of recovery in the coming months.