2019 Massachusetts Housing Market And Real Estate Predictions

When you think of Massachusetts, what comes to mind? You may think of American history, crab and lobster fishing, or the Massachusetts Institute of Technology.

Massachusetts is also a state with a booming housing market.

Massachusetts, known officially as the Commonwealth of Massachusetts and unofficially as The Bay State, The Pilgrim State, The Puritan State, The Old Colony State, and The Baked Bean State, is the most populous state in the New England region of the U.S.

Massachusetts’s per-capita gross state product is the third highest in the nation at over $53,000. Reports from 2015 show that Massachusetts was home to twelve Fortune 500 companies and was even named the “Most Innovative State in America” by Bloomberg.

The unemployment rate in Massachusetts is at 3.5 percent statewide and has been since October of 2017. This is well below the national average, indicating a higher rate of employed people in Massachusetts than the country at large is experiencing.

The Massachusetts housing market is experiencing rising prices and shrinking inventory, indicating that 2018 is a great year to buy real estate in Massachusetts.


Compare and Contrast This Year’s Information to Last Year’s Massachusetts Housing Market

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Currently, the median home value in Massachusetts is $393,101. This is above the national average. Over the past year, Massachusetts has seen a 6.8 percent increase in home values statewide. Zillow estimates that home values in the Massachusetts housing market will increase an additional 3.8 percent each year.

In addition to the rising home values, Massachusetts is experiencing increasing listing prices as well. Listing prices are different from home values in that they indicate real value considering the individual housing market. Home values are objective estimates of price not considering external factors.

A listing price that is higher than home values is indicative of an in-demand housing market. Zillow estimates that the listing price median in Massachusetts will rise over the next year.

While the nation was experiencing a sharp decrease in home values, the Massachusetts housing market survived. Another positive indicator of a healthy housing market in Massachusetts is the lower-than-average delinquency rate on mortgages. Mortgage delinquency happens to 1.6 percent of Americans nationwide but only 1.5 percent of Massachusettsians.

Less than 10 percent of listings in Massachusetts required a price reduction to be sold. Additionally, homes remained on the market for less than 100 days – a fairly impressive statistic in the real estate realm.


Contributing Factors to the 2018 Massachusetts Housing Market

  • Home values are expected to increase by 3.8 percent in 2018
  • Low supply will continue to foster an in-demand housing market
  • Mortgage rates for traditional 30-year-fixed will likely see 5 percent increase within the year – unprecedented but a welcome increase
  • Developers will likely soon shift to building starter homes, meaning that now is the time to find a worthwhile investment


Best Places to Live in Massachusetts

Massachusetts is known for Boston, Harvard, and the Red Sox – but the reality is the state has a ton to offer in terms of stable economies all across its cities and towns.

The number one best place to live in Massachusetts is Brookline, MA. Brookline has an “A” rating for its public school system, family-friendliness, outdoor activities, nightlife, diversity, health and fitness, and commutability.

Brookline is a suburb of Boston and home to about 50,000 people. The suburb offers crime rates well below the national averages of violent crimes and property crimes.

However, the housing market in Brookline can be less than favorable for some. There is a high property value that will not be feasible for all. The average income in Brookline is over $100,000 annually and largely compensates for the $758,000 median home value. This is likely why only about 49 percent of residents own their homes as opposed to renting it.

Lexington, MA is a great example of a fantastic town in Massachusetts with a strong housing market. The median sales price in Lexington is over $700,000 but the average annual income of over $150,000 for residents likely fills the gap – especially when you take into account that over 80 percent of residents own their home.

Lexington is a suburb of Boston that is home to around 32,000 people. Overall, Lexington has been given an “A” rating for its public schools, family-friendliness, outdoor activities, crime and safety, health and fitness, and commutability.  


The Massachusetts Housing Market Is Ready for You

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If you’re thinking about purchasing real estate in 2019, Massachusetts offers a great opportunity for investment. As 2018 passes, housing values will likely increase and, in all honesty, will likely continue beyond 2018 given the current progression of the U.S. market.

Outside of predictions, current real estate data also indicates a healthy housing market in Massachusetts. Less borrowers in the Massachusetts housing market are delinquent on their mortgages than the nation at large.