2017 Real Estate Year in Review I Cambridge I Somerville I Surrounding towns
What happened in 2017? We had another robust year with a real estate market fueled by a low inventory and a high buyers demand for housing. Consequently, prices have increased under the market pressure and following bidding wars (an average of 5-6% over asked price). The sales in volume are down 10% in Cambridge (777 properties sold), 3 % in Somerville (719 properties sold) and 10% in Arlington compared to 2016. And the sale prices have escalated. The average sale price jumped up 8.5% in Cambridge and is now at $1,072,000 and 12% in Somerville to $820,400.
If single family homes and condominiums have recorded relatively moderate positive gains (<10%), the sale prices for multi family buildings whether in Cambridge or Somerville have spiked. The average sale price for a multi in Cambridge has reached $1,845,000 which is a 28% increase compared to year 2016 and $1,153,000 for Somerville, a +20% gain. This market is the target of investors, foreign or local, and developers. Those properties will fueled the rental and sale inventory in the year to come.
It is important to note that the average sale price is boosted by new developments which lately have targeted families vs. young professionals offering larger scaled 3 bed condominiums or townhouses (deeded as condos). The median price for condos in Cambridge is $750,000 and $650,000 in Somerville.
If you own or wish to purchase a single family, the disparity in sale prices from one town to the other is dramatically different.
If you wish to purchase a condominium, the markets tend to be more homogeneous, and there are still up and coming pocket neighborhoods more affordable to first time buyers.
Watch the local housing report 2017 with the average sale prices and median prices per segment of market.
Most housing market analysts believe that prices will continue rising in 2018 for one single reason: the demand is so high. Low mortgage interests rates continue to keep homeownership a less expensive option than renting in all of the nation 100 largest metros areas. Besides, homeowners build equity and long term wealth.
Boston is becoming the Silicon of the north with major influx of funding for start-ups in Technologies. Wages are expected to grow 4% and unemployment rate to fall to 3.7%. A good strategy might be to buy soon.
I welcome the opportunity to listen and assist you with your real estate needs, whether buying or selling. It is key to hire a local real estate expert for your dream to become reality if you are buying in this highly competitive market. Contact now to schedule an appointment at 857 204 9872 or email firstname.lastname@example.org