Four reasons why home prices may increase in Boston in 2019 (but not as much):
At the time of writing this article Boston is experiencing a yearly price increases. Most analysts predicted a Boston real estate market cooling off and it did occur. Most analysts are predicting a further cooling in the market in 2019 and it is likely to occur.
- Boston will experience good, but slower population growth form 2018. For many years downtown Boston has been a top moving destination in the country. However, the city of Boston growth may quickly slow to national averages over the next few years, or around 1% total annual growth. Population growth in Boston slowed in the past. Boston is no longer the fastest growing metro area. Regardless of this slower growth pattern, Boston will still likely experience above average population growth in 2019.
- Boston will experience slower job growth. The good news is, Massachusetts has a very low unemployment rate at the moment, 3.7%. The bad news is, job growth has recently slowed as the area approaches “full employment.”
- The downtown Boston real estate markets is still strong. Having great neighbors (such as Beacon Hill and Boston Midtown) which provides excellent stability to the Boston real estate market. These exceptional neighbors ensure long term transfer growth (
- Mortgage rates are still historically low (currently hovering around 4%) and will likely move up but in slight upward movements.
Summary:
With decent population growth, a good employment rate, low housing construction rates, good neighboring real estate markets, and a continuation of reasonable mortgage rates, the Boston luxury real estate market in 2019 should experience slower growth, likely a 2% to 3% hike in housing prices. The years of 10% housing price increases are gone and not likely to return anytime soon. However, Boston should have a good real estate market for the foreseeable future. If you are thinking of selling your home, you should know that the Boston real estate market is also seasonal. There are much better and much worse months of the year to sell. Read my article on the best time of the year to sell your Boston condo, a full month to month breakdown.
