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Get Ready for the 2015 Market

by Boston Agent

Demand and Inventory

The Standard & Poor’s Case-Schiller Boston Home Price Index declined slightly in October, from 176.65 to 75.76. The number stood at 176.74 in August after climbing from 166.98 in February, a gain of almost 10 points. The index for the Boston area is still well above the national average, which fell 0.23 percent to 167.11 in October.

Demand is likely to remain strong, however, as Boston continues to grow in population. About 24.3 percent of Boston residents are between the ages of 18 to 34, according to the U.S. Census Bureau, compared to 23.6 percent of Massachusetts’ population and 23.4 percent nationwide.

Housing starts remained slow in the Boston-Cambridge-Quincy area in the Fourth Quarter, according to the Federal Reserve Bank of St. Louis. For November, there were 349 housing starts recorded, down from 373 and 487 in September. The October number was the strongest since there were 514 housing starts in December 2007.

The U.S. Census Bureau reported that 349 permits were issued for single-unit buildings in the Boston area. Permits also were issued for 16 two-unit and 21 three- or four-unit structures and for 889 buildings of five units or more.

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