Boston foreclosure investing is viable largely because of price appreciation in the area, in addition to strong economic prospects for Boston and other large cities in New England.
Investors who can buy residential and commercial properties at lower prices can hope for resale or lease at higher prices because of the stronger prospects for recovery in the Boston metro area.
According to the Federal Reserve researchers, several manufacturing enterprises in the Boston area are expecting higher-than-expected increases in jobs and a number of companies in the information technology services, software, staffing and residential property sectors are expecting increases in demand from clients.
With substantial improvements in the Boston economy and an unemployment rate much lower than the statewide and nationwide rates, the number of pre-foreclosures in Boston and the number of homes entering Boston foreclosure listings are declining. According to economist Gleb Nechayev, Boston is a city that has been faring well despite the downturn because of its strong economic fundamentals.
The unemployment rate in the city was 8.2 percent in December while the statewide rate was 9.3 percent and the nationwide rate was 10 percent. All the three rates, however, marked increases of more than two percentage points year-over-year.
People spending their efforts and money on Boston foreclosure investing can also expect to benefit from continued home price appreciation despite the downturn. According to an online real estate firm, Boston was one among five cities able to maintain or increase their home price levels in January despite price declines in other metro areas.
Year-over-year, house prices in Boston climbed up by 1.7 percent while the next cities on the chart, Los Angeles and San Francisco, increased their home prices by 0.9 percent. San Diego and Denver posted increases of 0.2 percent and 0.4 percent, respectively.
Nationwide, home prices dropped by 0.33 percent in January compared to December 2009. The annualized price appreciation rate improved, but it was still negative at -4.8 percent in January, compared to -5.5 percent in December.
Another positive development in the Boston metro area is the expected decline in vacancy rates for apartment properties and increase in rents. Economist Nechayev said that the vacancy rate will fall from 5.4 percent in the last month of 2009 to 4.6 percent in the first months of 2010 and that rents will rise from an average of $1,417 to an average of $1,458, making Boston foreclosure investing in the multifamily sector another great investment option.
Author Resource:-> Original Post: Boston Foreclosure Investing Viable due to Price Increases on ForeclosureDeals.com.
Article From Real Estate Pro Articles