As the country continues to recover from the Great Recession, it is only natural to wonder if Boston home prices have fully recovered or if they are still working their way toward recovery. While it is difficult to say with certainty if the city has moved completely beyond the Great Recession, it does appear as though over half of the homes in the city have recovered. Furthermore, the Boston luxury housing market continues to post strong figures with price increases within the luxury housing market outpacing those in the non-luxury housing market.
Exploring Boston’s Housing Market
According to a recent report that evaluated the 100 largest Metro areas in the country, 59.3 percent of the homes in Boston have recovered to their pre-recession values. The report involved analyzing data spanning from December 1, 2009 to March 1, 2017 in an effort to determine which areas have recovered the most since the Great Recession. In the case of Boston, over half have recovered to their pre-recession values from $389,562 to $461,686.
While this is a relatively healthy recovery, other Metro areas have experienced a greater amount of success in terms of bouncing back from the Great Recession. Denver, Colorado, for example, has experienced the greatest recovery with 99 percent of homes returning to their pre-recession value. On the other end of the spectrum, Las Vegas has experienced the smallest recovery with less than 3 percent of homes returning to their pre-recession value. Other housing markets with less than 3 percent of their homes recovering to pre-recession values include Tucson, Arizona (2.4 percent), Fresno, California (2.5 percent) and Camden, New Jersey (2.7 percent). Others on the high end of recovery include San Francisco, California (98 percent), Oklahoma City, Oklahoma (94.3. percent) and Nashville, Tennessee (94.1 percent).
Boston’s Luxury Home Market Prices are on the Rise
According to a recent analysis, the average sales price in Boston’s luxury market increased by 14.1 percent during this year’s first quarter when compared to the same time last year. With a particularly strong showing so far in 2017, the luxury housing market in Boston is outpacing the rest of the market.
Defined as the top 5 percent of the market, the average price of a home on the luxury end of the market was $3,540,000 at the end of March. For the rest of the housing market, the average was $675,000. These figures also represent a significant jump of 11.8 percent when compared to the same time last year, but still falls short of reaching the increases achieved by the luxury housing market.
As is typically the case when housing prices go up, these increases are largely spurred by a lack of homes available on the market combined with extremely strong demand. Nonetheless, when compared to other hot markets, Boston saw a much greater increase in prices. San Francisco, for example, saw its average price increase by only 4.6 percent during this same time period