“Housing prices in metropolitan Boston continued to strengthen last month despite a softening in buyer demand due to the weak labor market, more stringent lending requirements for home mortgages, and the end of the federal home buyer tax credit.

The median selling price for a detached single-family home increased 5.4 percent in August compared to the same month last year to $490,000.  It’s the sixth consecutive month – and tenth time in the past 12 months – that the monthly median home price has improved on an annual basis across the 54 cities and towns in GBAR/GBREB jurisdiction.  In addition, the median selling price has climbed 40 percent from its nadir during the recent market correction, which occurred in March 2009 when the median price of a single-family home in Greater Boston fell to $350,000.

The condominium market experienced an even stronger rebound in prices over the past year, with the median selling price up 9.3 percent in August from the same month last year to $372,000.  This equals the all-time high monthly median selling price for condos in Greater Boston which was first recorded in July 2007 (and also observed in July 2010).  Notably, the median selling price has risen 37 percent since January 2009, when the monthly median price fell to a low of $270,000 in the recent market correction.” Continue Reading entire article, More Information

Here are the details: Congress Approves Extension of Tax Credit and Extends Benefits to Trade Up Buyers The White House said the legislation builds on its efforts and President Barack Obama would sign it into law Friday. The House passed the bill on Thursday, a day after the Senate had already done so. With the $8,000 tax credit for first-time homebuyers set to expire at the end of November, there was a sense of urgency in getting it to Obama’s desk. The legislation would extend the program through June of next year, as long as the buyer signs a contract by the end of April. It also offers a $6,500 tax credit to those who have lived in their current residence at least five years. The measure doubles the income ceiling for eligible individuals to $125,000. Homes must cost less than $800,000 to qualify.

Light on the Horizon: The Future of Housing

Please contact Joanna at 781-316-3606 or jain@housingcorparlington.org for more details.

The author’s view does not take into account the intangible benefits of homeownership that are equally important as economic issues. There is a sense of empowerment, community and achievement that people experience when owning their own home as opposed to renting. What do you think?

A Bounce? Indeed. A Boom? Not Yet.

THE sudden rise in home prices suggests that the psychology of the market has shifted substantially. But what should we expect in the months ahead? Not necessarily that we’re entering a new housing boom. To a large extent, where we’re heading depends on what home buyers are thinking.

Some clues are found in the annual home-buyer surveys that Karl Case, the Wellesley economics professor, and I have run for years. For the surveys, we canvas recent home buyers in four cities — Los Angeles, San Francisco, Milwaukee and Boston; the surveys are now being conducted under the auspices of the Yale School of Management. We have just received the 2009 results, with responses from June and July.

http://www.nytimes.com/2009/10/11/business/economy/11view.html?ref=business&pagewanted=print