Home prices are increasing, new building per­mits are on the rise, and fore­clo­sures have dropped, offering the strongest evi­dence yet of a sus­tained recovery in the Greater Boston housing market, according to report to be released Thursday.

In its most opti­mistic housing fore­cast in recent years, the non­profit Boston Foun­da­tion pre­dicts that housing and con­do­minium sales will con­tinue to improve through the end of this year, and that fore­clo­sures will be down by 40 per­cent com­pared with 2012. But its Greater Boston Housing Report Card also warned the rapidly rising homes prices could out­strip incomes, cre­ating an afford­ability crisis that is dis­tancing working-​​class, moderate-​​income fam­i­lies from home ownership.

We think we’ve turned the corner,” said Barry Blue­stone, the director of the Kitty and Michael Dukakis Center for Urban and Regional Policy at North­eastern Uni­ver­sity and lead author of the study. But he added, “The economy is leaving housing afford­ability behind.”

The housing recovery in Boston and its sur­rounding com­mu­ni­ties is marching ahead despite the fact that the state’s unem­ploy­ment rate has jumped nearly a per­centage point since April, to 7.2 per­cent in July. The rising job­less rate would prob­ably result in stag­nating or declining house­hold income, according to the report.

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