Check out the change in Median sales price for Single Family homes, Condos and Multi-Family in the Boston area for the first quarter of 2017 with compare to first quarter of 2016
In most cities and town the prices continue to rise during the 1stQ of 2017 with compare to 1stQ of 2016.
The median sales price for condos has gone up in over 6% in the following cities: Arlington: 11%, Boston 10%, Somerville 6.5%
Needham has seen the highest hike in the median sale price for single-family homes 11% and Somerville has seen a huge increase in the median sale price of Multi-Family: 27%.
In Brookline, Lexington, Natick, Arlington SF and Newton there was no significant change in the sold median price.
Looking at the towns with the biggest increase in Median sale price shows that most of them are in or around Boston and with a good commute to Boston.
In general (as discussed here before) there is a strong trend of moving back into the city (Boston/ Cambridge) and an increased demand for condos.
Boston and Cambridge have Hospitals, Colleges, Universities, very strong financial district and many Hi-Tech and Bio-Tech companies, that located there and paying premium to attract the younger generation to join them.
This drive prices up, and as it looks now and as other professional predict, it will continue to drive prices up, even with the increase in mortgage interest rates.
I predict that fewer people will be able to afford to buy their first home and more will be forced to rent. Right now the ROI (Return On Investment) in the greater Boston is less than 3%. However, investors keep buying with the anticipation of rent increase as well as home prices increasing.
All this is very confusing for the first time home buyers, my advice is to consult your Real Estate professional (or your accountant) about your needs and goals and based on that decide if this is the right time for you to buy.
You can also check the cost of rental at this link: