Boston is a hot market
If you are thinking of buying a home or investment property, consider one of the hottest markets in the United States, Boston, Massachusetts!
If you are actually looking to sell your home this year, you may want to wait until next year. The Real Estate Forecaster is predicting a home value increase of 8.6% from now until August 2019 in the Boston metro area.
Boston home values
Boston’s median home value in August 2018 was $582,000. Our confidence interval of 95%, gives us a lower and upper bound home value of $575,588 – $650,888 for the Boston metro area. However, given that the market is very hot at the moment and the median list price per square foot is $676, we expect a median home value of $632,063 by August 2019, a year-over-year increase of 8.6%.
We took several factors into account when determining our valuation. First, the health of the Boston market gets a “B“ rating from our team, which is very healthy, compared to other housing markets across the country. We also see that mortgage delinquency rates are below the national average, as well as homes with negative equity. This contributes to the overall well being of the housing market in this area.
The rent list price is around $2,700/month in the Boston metro area and the breakeven horizon of buying versus renting is approximately 3.2 years.
Risk to forecast
Currently, there are 4.7 homes per 10,000 foreclosed on in Boston. This is greater than the national average of 1.6 homes per 10,000. Should this materialize into a greater number over the next year, our forecast may touch the lower bound of the range. However, since the actual delinquency rate is currently lower than the national average, we believe that the Boston market will remain in good shape.
Whether you are buying now or planning on selling next year, it’s a good time to take a look at Boston. If this market is a bit too pricey for you, subscribe to our website to get real estate forecasts on some of our other, less expensive picks.
If you are looking to buy a home and/or invest in a rental property for the next 5-7 years, take a look at our Premium Real Estate Forecaster for longer valuations.