Boston Area Housing Recovery Continues Making Progress

The Boston area housing recovery is continuing to move in a positive direction, but more work needs to be done to help the economy fully recover. The Obama administration said in its June housing scorecard, which is a comprehensive report on the nation’s housing market prepared by U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury, that June’s housing scorecard echoes the sentiments of the last two housing scorecards.

Positive Trends in the Boston Area Housing Market

Boston area housing recovery continues to improveIn May, the administration cited overall positive trends in the Boston area housing market, but cautioned that the harsh winter slowed growth overall across the country while the economy continues to recover from the Great Recession. In April, the administration also noted the tough winter as a challenge to the year’s Boston area housing performance.

Even in areas not directly affected by winter weather, the overall nationwide economy and housing markets were affected.

According to June’s scorecard, purchases of new homes surged 18.6% in May, indicating an improving market. New home sales rebounded to a seasonally adjusted annual rate of 504,000 in May, following sales of 425,000 in April. That’s up 16.9% from one year ago.

In May, purchases of new homes rose by the biggest monthly gain in 22 years (since January 1992) and to the highest level since May 2008.

The scorecard also cited the rise in existing homes as a positive. Existing homes, which include single-family homes, townhomes, condos, and co-ops, sold at a seasonally adjusted annual rate of 4.89 million in May, which is up 4.9% from April. But that figure is still 5% below the 5.15 million pace of May 2013.

Although the Boston area housing market continues to improve, Treasury remains committed to helping homeowners who are still struggling to make their mortgage payments. The administration said that despite the encouraging news in the June scorecard, “there is a need to continue with recovery efforts to sustain home sales, help homeowners that are underwater, and reduce mortgage delinquency rates that remain elevated.”

Also of Interest  Boston Area Real Estate News - January 2015

Stay abreast of all the news affecting Boston area housing 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.

Remember, we post daily tips and articles on Twitter, and would love to have you like us on Facebook.