Craig Douglas
Managing editor/online vertical products and research- Boston Business Journal
Email
| Twitter
Greater Boston’s housing market is still off from its pre-recession peak, but an ongoing surge in buyer demand appears to be closing the gap.
According to Zillow.com’s July housing update for the Boston-metro region, the median sale price for the month was $370,900, off roughly 2 percent from the local market’s highwater mark of $379,900 set in July 2005. Perhaps more impressive: The average sale-to-list price for the month was 99 percent, while 60.6 percent of July’s sales resulted in a net gain for sellers. By comparison, only 24.6 percent of sellers booked a loss on transactions that closed last month, according to Zillow.
Related content:
- The hottest housing markets in Massachusetts (Aug. 1, 2013)
A primary driver for buyer demand is the region’s healthy rents, which continue to incentivize people with the means and credit scores to try their hands at ownership. For example, Zillow said its median monthly rent for the Boston area was $1,997 in July, a 4 percent increase from the $1,920 median posted a year earlier.
By comparison, a household with a 10 percent downpayment would likely pay around $1,700 per month in mortgage principal and interest, based on Zillow’s median home value and prevailing interest rates for a 30-year mortgage.
Among the sampling of local markets highlighted in the Zillow report, Newton boasted the highest median home value in the Bay State at $745,200, an 8.4 percent year-over-year increase. In addition:
- Boston, with a median home value of $395,800, is up 12.6 percent year-over-year.
- Cambridge posted a median value of $496,400, a 1.9 percent gain for the month and a 14.4 percent increase from the same span a year ago.
- Lowell’s $194,100 median was a 9.7 percent improvement from July 2012’s figure.
- Brockton posted a median of $176,600, up 1.8 percent for the month and 7.4 percent over the preceding 12 months.
Open all references in tabs: [1 – 3]