Growth of Boston Area Home Prices Slows for July 2014

The growth of Boston area home prices, both the quarter-over-quarter and year-over-year, are lower than they were 12 months ago, but wages are not keeping up. This word according to data released from Trulia for July 2014.

Month-over-month increase in asking Boston area home prices of 0.8% was in line with the average monthly gain over the past yearThe month-over-month increase in asking Boston area home prices of 0.8% was in line with the average monthly gain over the past year, settling back down after a 1.2% month-over-month gain in June. The quarter-over-quarter increase of 2.5% remains below the level of last spring’s price spurt, when the quarter-over-quarter increase was 3% or higher in March through June 2013.

Boston Area Home Prices Continue Widespread Increases

Although Boston area home prices aren’t rising as fast as they did in spring 2013, price increases continue to be widespread with overall year-over-year price gains, and quarter-over-quarter gains.

Nationwide, for the first time in more than two years, none of the 100 largest U.S. metros had a year-over-year price increase above 15%. The stagnation of wages and household income, though, shows that as Trulia states, incomes aren’t keeping pace with even slowing price gains.

Why are home prices in some areas rising faster than others, and why are some actually falling? Because the housing market is still recovering from the bust, and local markets where prices had fallen most are now seeing larger price gains. That’s the “rebound effect,” which was fueled by investors and other home buyers scooping up relative bargains. Once those bargains are gone, there’s no more room to rebound.

We’re already seeing gains in Boston area home prices slow dramatically or even reverse slightly in some isolated locations.

Stay abreast of all the news affecting Boston area home prices right here at our website. More articles regarding Boston area housing can be found in the Boston Real Estate section, or the Boston Real Estate News section, both to your right under Boston Real Estate Categories.

Also of Interest  Boston Area Home Prices Back to 2004 Levels

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