Real Estate Trends – Cambridge, Massachusetts

Introduction:

Welcome back again for our latest real estate market trend report.  For those of you that are here for the first time what we do in these reports is examine the real estate market in a city or town in Massachusetts or New Hampshire to evaluate the current conditions.  We do this by looking at the changes in three key metrics year over year for the municipality to see how the market has changed and then evaluate what those observations might mean for that market moving forward.

Today we are highlighting the market in Cambridge, MA in Middlesex County

 Cambridge MA Montage - Cambridge Massachusetts Real Estate

Market Trends in Cambridge, MA – September 2014 and 2015:

The Cambridge, MA market has fallen off a bit since last year.   Both the average listing and sale prices were down a significant amount.  The median prices were down significant amounts as well.  The days on market are up a lot as well.  Inventory was up a little going from 6 sales in September of 2014 up to 8 in September 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For Cambridge, MA the average listing price in September 2014 was $1,444,983.  This was down to $991,113 in September 2015.  This gives a tremendous decrease of 31.41% year over year. 

We definitely want to look at the medians too in this case since this drop was so large.  Taking a look at the median prices we see that they are quite a bit different than the average in both 2014 and in 2015.  For September of 2014 the median listing price in Cambridge, MA was $1,285,000 and in September 2015 it was $937,500 which still gives a huge 27.04% decrease.

Average Sale Prices:

Next up we will be looking at is the average sale prices.  The average sale price in Cambridge, MA in September of 2014 was $1,537,417 and in September 2015 that was down to $1,062,069.  That gives another extremely large 30.92% decrease. 

We see similar, but less extreme, pattern with the median sale prices as we did for the listing prices.  For September of 2014 the median sales price for Cambridge, MA was $1,501,250 and in September 2015 it was $1,003,000 giving an even larger 33.19% decrease, for the biggest drop of any of the things we examined.

By any of the measures the Cambridge, MA market is down a huge amount.  Everything is pointing to prices being down around 30% or more.  Since sales are the most important and medians are usually favored it is safe to conclude that the single family market in Cambridge, MA is down over 30% this month from September of 2014.

Average Days on Market:

Finally the last metric we look at are the average days on market, which is the measure of how long it takes for a house to sell in the current market.  For Cambridge, MA the average days on market in September of 2014 were 19.83 and the average days on market for September 2015 were 30.50, for a sizeable 53.81% increase.  Though it is worth noting that 30 days on market is usually considered to be okay and being fewer than 20 is very good, so while they are up overall they are still quite good.

Cambridge, Mass Summary:

The Cambridge, Massachusetts real estate market is down tremendously since last year.  The average and median prices are down by huge amounts.  The days on market would still be considered fairly good still they were a good amount as well, further supporting a weaker market. 

In summary if you are looking to sell a house in Cambridge, MA now you should expect to get a lot less for it than you would have gotten last year.  You should also expect it to take a bit more time to sell compared to last year too. 

 

Do you need to sell your Cambridge, Massachusetts house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

Please share your questions and comments below.

 

 

 

(Image credit: Cambridge Montage via Wikipedia)

 

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