Cambridge / Somerville Market Insight

With longer, warmer days, come busy open houses, and busy showing schedules. Cambridge and Somerville continue to be active real estate markets. A lot of people out shopping around, trying to find just the right place to lay their roots, buy for investment, etc. Many prospective buyers who put their search on hold hoping for rates to get a bit more appealing, and choosing to rent, have gotten beaten up by the rental cycle, and the high rental values in the city. Many have decided to not wait any longer, and to purchase now. With the rates being a shade under 6.5% today, for a 30-year fixed rate mortgage, pulling the trigger on a home has become a desire that most are not willing to put off any longer. Economic influences continue to be a play, with the recent tariff announcement intensifying Market uncertainty, causing a decline in mortgage rates but leading to inflation concerns. Refinance rates have dropped down to about an average of 6.49% for 30-year mortgages. The forecast for the rates is uncertainty, but most predict continued low rates.

 

In Cambridge, the condo Market is the busiest out of the three classes of homes. Single-families, condominiums, and multi-families. Not surprising since this is typically what a first-time home buyer will purchase. Year to date the average list price for condominiums in Cambridge is $1,598,095. The average sales price is $1,163,086. Compare this to the average sales price in March of 2024 which was at $1,096,351. Prices continue to go up. And average days on Market is about the same as it was last year. 34 days on Market this March and 35 days on Market in March of 2024. More properties have hit the market this past March at 73 compared to 59 last march.

 

In Somerville, the condo Market is equally strong. But the average sales price has dropped compared to last year. Average list price in Somerville last year in March was $1,124,956 compared to this years average list price coming in at $1,057,214. Average sales price in Somerville last March was $1,035,821 while this year the average sale price is $961,977. Average days on market last year in Somerville stood at 33, while this year, they have shot up to 51.

 

Chief Economist of the National Association of Realtors, Robert Yun, has stated that the current national inventory is at an extremely low position. Just a shade above its lowest point in January of 2022, which was the lowest it has been in the past 25 years.

 

Random Facts-

 

-Of the 88 million homeowners in the country, 35% have no mortgage on their home. 

- Median net worth between owners and renters stands at $10,000 for renters compared to $415,000 for homeowners

-Gasoline prices continue to fall to close to $2 per gallon, similar to pre-covid.

 

Thank you for reading, and if you would like to reach out with any questions or comments feel free! I am here to help you with all your real estate needs.