0
0
0

CoreLogic: Boston Homes Continue to Get More Expensive

by Alonzo Turner

CoreLogic-december-home-price-appreciation-nothaft-Nallathambi

Home prices continued their steady climb rounding out 2015, rising both year over year and month over month, according to CoreLogic.

Across the nation, home price appreciation averaged a 6.3 percent increase from Dec. 2014 to Dec. 2015 – adding to a more than year-long trend of similar increases, said CoreLogic Chief Economist Franck Nothaft.

“Nationally, home prices have been rising at a 5 to 6 percent annual rate for more than a year,” he said.

However, Nothaft went on to explain that national price increases were hardly reflective of how prices were rising at a metro level, where appreciation can “vary substantially.”

“Some metropolitan areas have had double-digit appreciation…while others have had price declines,” he added.

In Boston, price increases have slowed in recent months, with home prices in the city increasing only 4.2 percent year-over-year in December. Statewide the increase was even less pronounced at 3.7 percent.

The slowdown in appreciation, for Boston in particular, is actually a welcome sign for a market struggling to maintain affordability. Prices are likely to follow along this track into 2016.

HomePricesDecember-01

Looking back at the nation, CoreLogic’s president and chief executive, Anand Nallathambi, said that improved property values are likely to fuel what he expects will be a surge in desperately needed single-family construction, padding inventories and hardening the ceiling on exorbitant appreciation.

“Higher property valuations appear to be driving up single-family construction as we head into the spring. Additional housing stock, especially in urban centers on the coasts such as San Francisco, could help to temper home price growth in the longer term,” he said. “In the short and medium term, local markets with strong employment growth are likely to experience a continued rise in home sales and price growth well above the U.S. average.”

Read More Related to This Post

Comments

  • Sandra Katz says:

    There could be more affordable housing if only the legislators would do something about the onerous housing laws that contribute to the housing crisis. it is very expensive to do an eviction in this state, and makes landlords wary of tenants who are “judgement proof”. We will go for higher rents to cover costs for property destruction, eviction costs and replacement of lost rents. Boarded up properties could be back on the market if the costs were not prohibitive. our laws are to blame for the lack of affordable housing in this state,especially Boston.

Join the conversation

Oops! We could not locate your form.