July home sales are the best since 2005, up about 27%, according to the Warren Group, publisher of Banker and Tradesman. The Massachusetts Association of Realtors reports similar results.
The increases were similar for the nations real estate sales. The 20 cities tracked by the Case-Shiller index also saw price gains in June over May, with Boston real estate sales posting a 2.5% increase.
Experts cautioned however, that there are enough reasons to be cautious. Fears of a double dip recession haunts some, and the slowness of economic growth bothers other real estate analysts. Nearly 5000 homes changed hands in Massachusetts in July, a far cry from the 6672 homes that sold in July of 2005. The economic situation remains unsettled and could unravel in a matter of months, due to the debt crisis in Europe or a possible global meltdown like that which took place in 2008. There are a series of huge federal budget cuts set to take place next year unless the new president and congress take some action soon. Most experts now think there is a 50%-50% possibility of that happening, which could say bye-bye to a continuing real estate recovery.