The Massachusetts housing market has been improving in recent months. Data from the Greater Boston Association of REALTORS and other organizations shows that sales and prices in 2015 were the strongest in years.
Demand for housing has been rising with economic growth. Low interest rates and new housing programs also have played a prominent role.
However, the rebound may be in jeopardy if housing production doesn’t improve. State lawmakers are taking two steps to address the concern.
There are several problems that appear to be playing a role. Many parts of the state fell into disarray during the economic downturn. State officials are confident these properties can be restored to the benefit of middle-class and lower income citizens.
State Sen. Linda Dorcena-Forry hopes the state legislature will introduce new solutions for the crisis this year. “Across the commonwealth, low rates of housing production have not kept pace with population growth and need,” she told Wbur.
However, contractors have not taken the initiative to gentrify these properties. State lawmakers will try to encourage them to do so by introducing new legislation in the coming weeks.
Part of the housing crisis also stems from the agent demographic. Lawmakers are considering legislation that would offer generous tax breaks to seniors. In exchange, the government would earned the right to purchase the property at a discount when it goes to market.
Dorcena-Forry and other lawmakers are enthusiastic about the recent housing market recovery. However, they will need to continue working on new solutions to boost housing production to guarantee the sustainability of the rebound.
Local real estate agents should also be pleased with efforts to boost housing production, because they are noticing an increase in demand for many housing units for lower and middle class families. “We had 21 offers on one property recently,” said Joyce DiLiegro, of Exit Realty/Beatrice. “There are so many buyers and not enough property.”
While a modest housing shortage may be driving prices, it limits the opportunities for real estate agents. We can sell more homes over the course of a year if the supply if there are enough for every interested buyer.