Chicago, IL (PRWEB) November 28, 2013
Boston home prices made a huge jump in October which Peoples Home Equity finds to be much more surprising than the data it commented on for San Francisco in “San Francisco Prices Are Rising But Not Bubble Worthy.”
According to a November 27th article on BostonGlobe.com, “Single-family home sales rose 18.5%” for October. This is shocking when compared to the 6.4% rise in “new and resale houses and condos sold in the nine-county Bay Area” for San Francisco, as reported by DQnews.com. With recent existing and pending homes sale data declining nationally, Boston is doing relatively well with an 18.5% rise in single-family home sales. One must remember the key phrase is ‘single-family homes’.
Boston was one of the least effected cities to unwind in real estate prices during the mortgage debacle. According to data from the S&P/Case-Shiller Boston Price Index, the index value declined from a peak of 182.45 in September 2005 to 145.83 in March 2009, a -20.0% decline. This decline is relatively meager when compared to the real estate markets of Las Vegas, Phoenix, or Miami which experienced -61.7%, -55.9%, -51.2% falls from peak to trough.
Assets that fall less than others tend to do so because of a fundamental reason. The tight supply Boston is experiencing is having a strong reaction in demand. City residents are now looking to buy a home in the Boston area while a discount remains relative to previous years. In low inventory markets, sellers only take bids seriously from those who have the credit line to purchase immediately. At its current annual pace of 9.9%, the Boston home price index could surpass its 2005 peak before September 2014.
To participate in markets like Boston, that is experiencing a large number of home sales, home buyers much be prepared to act fast. Bidding can be very competitive and home buyers who do not have a pre-approved mortgage are basically out. Sellers do not want to wait to sell a home. A low inventory markets, sellers only take bids seriously from those who have the credit line to purchase immediately. Peoples Home Equity reminds all prospective home buyers that it is imperative to get approved for a home loan before shopping for a property.
To get start on a home loan application please visit: PeopleHomeEquity.com, or contact a representative today at: (855) 897-0300