For those of you who aren’t familiar with “The Beige Book,” officially titled the Summary of Commentary on Current Economic Conditions, it is a report on the current economic conditions of the 12 Federal Reserve districts, Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. The Beige Book provides anecdotal economic information through reports from bank directors, interviews with business contacts, and other market experts, and publishes eight editions every year. Today, Wednesday the 3rd, the March edition of the Beige Book came out, and it cites Boston as one of the few real estate markets on the rise.
Overall, the residential real estate market showed signs of improvement despite an unusually harsh winter nationwide, however average home prices generally remained flat or dipped slightly. Nationwide commercial real estate is still pretty unstable, only showing signs of stability in a handful of markets, however this may be due to a lack of credit for commercial development and dealings.
Boston, representing New England as a whole in the 1st district, is showing signs of stability as the rate of foreclosure is steadily declining and more homes are selling at higher prices! To quote the Book directly, “Economic conditions continue to show improvement in the First District. Respondents in the manufacturing, software and IT services, staffing, and residential real estate sectors indicate that demand continues to strengthen, with several manufacturing contacts citing better-than-anticipated increases.” As you can tell, the Beige Book covers more than just real estate, however, good news for business = good news for real estate! Following the rest of the country however, Boston’s commercial real estate market remains weak, but respondents claim that prices are slowly stabilizing as we make our way out of the recession. Commercial real estate shows only “modest” improvement, as many tenants are renewing their leases, however, many of the same tenants are also giving back space. As commercial real-estate continues its recovery, “home and condo sales continued to show significant year-over-year increases in December 2009,” which is largely attributed to the first-time homebuyer tax credit.
So what does it all mean? To quote Huliq News, “Metro Boston is expected to be one of the first areas in the United State to fully recover,” so it looks like buying a home is becoming a safer investment as our market recovers, meaning that now is the time to buy because prices are still low but will soon be on the rise. So where should you buy? How about RIGHT HERE at CondoDomain, where we refund you with a portion of the commission in cashback!