Thomas Grillo
Real Estate Editor- Boston Business Journal
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Home values in Greater Boston are expected to rise by 2.3 percent next year, ranking the region among the nation’s Top 10 hottest markets, according to a new study.
Zillow (Nasdaq: Z), an online marketplace for homes, analyzed the 50 largest metro areas and scored each on unemployment rates and population growth while also predicting changes in home values over the next year. “Hot” markets were characterized by lower than average unemployment, population growth of at least 2 percent or more during the past two years and expected home-value growth of more than 2 percent over the next 12 months.
A strong local jobs market helped put Greater Boston at No. 10 among the hottest markets. An unemployment rate of 6.2 percent ranked the region fourth among the top 10 list, helping to balance out weaker scores in population growth and expected home value growth. Population in Greater Boston has risen by 1.9 percent over the past two years, according to the U.S. Census Bureau, last among the top 10 metros.
On a national basis, Zillow preditcts home values will increase by 3 percent in 2014; the 30-year fixed mortgage rate will reach 5 percent by the end of the year; and home-ownership rates will fall below 65 percent of all households for the first time since 1995.
2014’s Hottest Housing Markets
- 1. Salt Lake City
- 2. Seattle
- 3. Austin, Texas
- 4. San Jose, Calif.
- 5. Miami
- 6. Raleigh, N.C.
- 7. Jacksonville, Fla.
- 8. San Diego
- 9. Portland, Ore.
- 10. Boston