Â Massachusetts homeowners donâ€™t have to be planning to sell anytime soon to be curious about the market value of their property. A home is such a major part of any familyâ€™s financial picture, itâ€™s only natural.
One important indicator of the direction of Â MassachusettsÂ home values is how the builders of new homes gauge the future market. After all, if you build new homes for a living, your bottom line is largely dependent on being able to predict future demand.
That is why this monthâ€™s rise in U.S. home-builder confidence in the market for single family new homes is a convincing follow-through to what we have been seeing for a while now. I find two unrelated sources that, taken together, point toward that conclusion.
The first is CNBCâ€™s web site, which zeroes in on the National Association of Home Builders/Wells Fargo Housing Market Index. Current conditions are reported to have risen three points in just one month, while the index measuring expectations for future sales hit 53 â€” and thatâ€™s the highest level since February 2007.
The second, CoreLogicâ€™s Case-Shiller Indexes Report, confirmed the home price increases of 2012 as having grown at the strongest rate in nearly seven years. The report included a (for them) remarkably bold headline: â€œMore to come in 2013-2017.â€
The new homes optimism was doubly good news because it comes despite increasing building materials costs, which usually dampen home-builder confidence. But the impact of rising single family home prices and reported sense of urgency among potential buyers â€œas a result of thinning inventories of homesâ€ more than compensated for the building cost increases. This may be good news for buyers targeting new homes inÂ Metrowest of Boston: better builder confidence should mean more new homes.
While weâ€™ve already seen a lot of this springâ€™s inventory enter the market â€” whether youâ€™re looking at existing or new homes inMetrowest, there is a good case to be made that todayâ€™s low mortgage rates plus the remaining bargains make 2013 a fortuitous year to purchase. If thatâ€™s how it looks from your vantage point, contact me today to begin pre-qualifying!
When you areÂ buying a homeÂ orÂ selling a homeÂ start by working with aÂ seasoned real estate professionalÂ who will keep your best interests at heart! I have helped home buyers andÂ sellersÂ for over 25 years. Iâ€™ll be there for you throughout the entire process! I can also refer you to reputable mortgage lenders, home inspectors and contractors.
Hopkinton, MA Real Estate Expert
RE/MAX Executive Realty