Home Prices Continue to rise Nationally and Locally

As housing continues to dominate local and national headlines, the through line of the story continues to be positive, if not exceeding expectations.  Data released this week by S&P/Case-Shiller Home Price Indices show all three of their composites: National, 20-city, 10-city, posting over 10% year-over-year increases.  Boston posted a 6.7% year-over-year increase and a 1.2% month-over-month increase.

Home prices in all 20 cities posted annual gains for the third month in a row, and twelve of the 20 saw prices rise at double-digit annual growth.  I have been saying for some time that the housing recovery is not an illusion, and here again are strong numbers supporting my projections from last year.

Locally, housing prices continue to rebound fueled in part by the low supply and high demand.  In a supply and demand business, the number of units available absolutely plays a role in pricing.

I surveyed 12 area towns, Middlesex County, and all of Massachusetts.  I found the median home price has increased year-over-year in the majority of the communities reviewed including:  Concord(+16%), Carlisle(+23%), Bedford(+14%), Lexington(+10%), Sudbury(+7%), and Wellesley (+17%).   Middlesex County had a year-over-year increase of 6% and median home prices across Massachusetts as a whole rose 8%.  Towns remaining neutral or decreasing were: Acton(-7%), Boxborough(-8%), Lincoln(no change), and Weston (-13%).

As we head into the tail end of the spring market, I am confident that the trend that has been established in the early spring will continue into the fall.  I believe we will not see significant increases in inventory over the summer, therefore the pent-up buyer demand will continue to drive prices up through the end of 2013.

For advice and guidance in real estate or representation contact me at 978.371.1234 or email info@theattiasgroup.com.