Before offering a qualified opinion of what will happen in the real estate market around Massachusetts, let's look at where we have been for the last thirteen years.
You might be wondering why I picked thirteen years? Well, 2005 is recognized as the peak in real estate values for Massachusetts like many other areas of the country.
We had a great run up in values like we had never seen. It was unprecedented. Something had to change, and it did. Real Estate values were out of control. Every month the cost of purchasing a home was rising. Real Estate agents would put price tags on houses that seemed unrealistic. The next thing you know there was a sold sign hanging on the lawn. This is the way things were in my area of Metrowest Massachusetts.
Then things changed!
One of the greatest boons in real estate was followed by one of the most significant busts we have ever seen. For many homeowners, it was like the great depression. From the Spring of 2005 until 2012 the value of real estate dropped every year. The years 2008 and 2009 were especially difficult. In 2012 values finally hit rock bottom.
Real Estate markets across the country devastated many lives. It was marked by unprecedented foreclosures. People were losing their homes everywhere.
Short sales became in vague. So many homeowners were underwater. Owning a home was not fun anymore. The Brinks truck was longer pulling up to everyone's property. These were not fun times.
In 2012 things finally changed in Massachusetts and many other areas of the US as well. Real Estate markets finally hit bottom and started to go up. For many, this came as a big surprise. People got used to losing money year after year.
Since then we have been on another significant roll. The last three years have been outstanding. We have had substantial appreciation in Massachusetts.
In my area of Metrowest Massachusetts which is a region of about 20-30 miles West of Boston, real estate has been especially strong. Low inventory coupled with low-interest rates has kept the real estate market chugging along at a solid pace.
Is it sustainable? I don't claim to have a crystal ball, but I'm great at shelling out an opinion.
Massachusetts still has a lot of things going for it. We have a lot of high tech industries that full a robust local economy. We have one of the best medical sectors in the world.
There is nothing to suggest there will be a radical change in how the real estate market performs in 2019 in Massachusetts. Some markets are certainly going to be hotter than others. Inventory of homes is going to dictate performance.
My prediction is that we'll see a slight drop in the number of sales from last year. We will also not see the run-up in prices as we have in years past. My best guess is that values will increase in line with inflation. For those who are wondering we have at least double that over the past few years.
There will be some towns that perform much better than others. For example, real estate sales in my home town of Hopkinton Massachusetts, which is known as the starting point of the Boston Marathon, should have robust sales in the 400,000-700,000 price point.
Competing towns to Hopkinton in the general area include Westborough and Southborough Mass which have similar enviable characteristics including excellent school systems and close proximity to major commuting routes. Southborough also offers the train that goes to Boston as well.
This is a highly competitive area of the market where homes don't last long. You would call this the real estate sweet spot.
For other towns nearby, it could be completely different. Neighboring Milford Mass, for example, will see many of their sales coming in the 300,000-500,000 range. Sales above that will be few and far between.
Framingham Mass which is at the heart of the Metrowest area should also see a slightly slower year in terms of overall sales.
Some of the areas outside of the Metrowest area that are known for affordability should continue to do well when it comes to real estate performance. These are towns that are a little bit more affordable than adjoining areas that are slightly closer to Boston.
Take a look at the guide to real estate in Metrowest Massachusetts where you can see a review of many of the towns in the general area. You will love the information if you are a potential prospect for relocation into this area.
Towns featured in the real estate guide include Ashland, Holliston, Framingham, Hopkinton, Westborough, Southborough, Bellingham, Franklin, Medway, Milford, Northbridge, Millbury, Upton, Shrewsbury, and Grafton.
Each of these communities has a lot to offer and will shape the performance of the real estate market throughout this popular region of Massachusetts.
The real estate market should remain strong in 2019 but not quite as good as the last couple of years. It should still favor sellers, especially in the Spring market.
Nothing should change drastically unless there is some kind of tragic event that disturbs the economy or interest rates spike.
Use these additional articles to make excellent decisions when you are going to be buying or selling real estate.