Boston Home Prices Gain 10% in 2013
The Boston-area housing market had its best yearly gain since the heady days of 2004: up 9.92% in 2013, according the the Case-Shiller Housing Index for Boston. The index is accurate because it compares sales of the same home throughout the years.
The chart shows a consistent annual saw-tooth pattern as prices climb in the summer then drop off in the winter. The best time to sell is the summer; the best time to buy is the winter.
But the overall market hasn’t regained the peak level in summer 2005, when the real estate bubble was in full froth. Right now, the market is back to where it was in October 2007. If you bought during the bubble years of 2004-2007, you might be under water.
Mortgage rates are near historic lows because of Federal Reserve policy to stimulate the economy. When rates rise, house prices don’t climb as fast and might fall.