Is the upswing in Metro Boston home prices likely to continue through 2013? I can give you a very short, conditional answer: yes! Let me explain the condition and the basis for optimism.
At the time of this post, the “fiscal cliff” budget debate remains unsettled. Until we have more direction from our lawmakers, any forward-looking statements about the Greater Boston real estate market must be tempered with caution. Any significant changes to economic policy, especially in regard to housing, could impact market activity.
Now I’ll share the basis for optimism. Freddie Mac’s Chief Economist, Frank Nothaft, projects that mortgage interest rates will be under 4% throughout 2013. He expects home prices to rise 2% to 3% nationwide. New home construction starts are expected to reach an annual rate of 1 million near the end of 2013.
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