Figures released last Friday, Jan. 4 by the Bureau of Labor Statistics have the national unemployment rate at 7.8 percent. This is the lowest national unemployment rate since January 2009. I am encouraged by the steady decline of the national figure capping off a strong year of recovery in our national economy.
Massachusetts also finished the year strong, posting 6.6 percent unemployment, down 0.3 percent for the year. Middlesex County was also very strong, posting the lowest unemployment numbers in the state at 4.8 percent.
In addition, the Consumer Price Index, a measure of prices of common goods such as food and fuel, has steadily declined in 2012. This indicates the average consumer is using less of their take home pay towards these basic necessities. With less take home pay going towards basic necessities, it frees up more household income for disposable spending, investing, and saving.
With more Americans back to work and spending less of their take home pay on essential goods and services, I believe these economic factors are creating the ideal setting for housing gains in 2013.
I surveyed several communities this fall and found that year-over-year home prices saw increases: Bedford 12 percent; Concord 13 percent; Lexington 6 percent; Middlesex County 5 percent.
As Wall Street and local job numbers stabilize, or see increases, Main Street and the lending community make decisions. As you can see, that volume uptick impacts home prices.
For a thorough dissection of housing trends contact me at 978.317.1234 or firstname.lastname@example.org.