Pricing Nation Econometrics forecasts that the average home value in the Boston Metropolitan Statistical Area (MSA) will decrease by .119% over the next twelve months. Residents will be pleased that housing price declines continue to bottom out in September 2013. Pricing Nation Econometrics is a division of Pricing Nation LLC, and more information can be found at www.pricingnation.com.
The purchase of a home is historically the largest investment one will make in his or her life. However, due to recent volatility from the credit and housing crisis, home buyers no longer believe that home values are always guaranteed to increase.
To ensure that buyers and sellers are confident in their investment decisions, Pricing Nation has developed a portfolio of regression based models that forecast housing price changes at the MSA, zip, and house level. These models are highly statistically significant as they were built using local housing demand/supply and macroeconomic data from the last ten years, which saw extreme upward and downward movements.
Of particular note is that Pricing Nation's forecasting model would have anticipated the severe downturn in Boston MSA home values in August 2006, a full twelve months before the actual downturn hit in August 2007, and 16 months before the U.S. officially entered a recession.*