Greater Boston home prices leap 5% in 2 months
Standard & Poors announced yesterday that Greater Boston home prices rose an impressive 5% over the last two months.
The startling news is contained in the non-seasonally adjusted S&P/Case-Shiller Home Price Index for Boston which climbed 2.3% in June, after leaping 2.7% the month before.
Good news tempered by seasonally adjusted results
Although the 5% jump in MA home prices should be a wake-up call to prospective home buyers who have been sitting on the sidelines, MA buyers may not need to panic yet: the seasonally adjusted version of the Case-Shiller Home Price Index for Boston shows a much less buoyant 1.7% rise in MA home prices over the same last 2 month period.
The seasonally adjusted Boston Index rose +0.69% in June after increasing nearly one percent in last May.
While these seasonally adjusted increases are respectable, they still leave Greater Boston home prices 2.3% below where they were in June 2010 and just 2.7% higher than the market low set back in April 2009 during the nadir of worldwide financial crises.
Buyers need to take heed
Whether you use the exuberant 5% unadjusted home price increase figure or the more modest 1.7% rise on a seasonally adjusted basis, the fact remains that Greater Boston home prices have risen over the last 2 months reported on by S&P.
This illustrates the danger of holding off on a home purchase hoping to buy at the absolute bottom. Home prices tend to lurch upward and downwards in spurts and you may find yourself on the wrong end of a market move if you try to time the Massachusetts real estate market.
If you need to buy a home, by all means do so now. Interest rates are low and there are lots of affordable homes from which to choose.
I honestly believe that in five years home prices will be a lot higher than where they are today.
You will be very happy then that you bought your home or investment property at today’s attractive prices and great mortgage interest rates!
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