Cambridge Real Estate Market Update | July 2023
The Cambridge real estate market continues to exhibit stability and steady growth, as evidenced by the latest market update. In this article, we will delve into the details of the market update for single-family homes and condos in Cambridge, MA. By analyzing key indicators such as median list price, market action index, inventory, and sales data, we can gain valuable insights into current trends and forecast the future direction of the market.
Single Family Homes
The median list price for single-family homes in Cambridge, MA is currently $2,349,500, remaining unchanged from the previous month. The market action index, which measures the balance between supply and demand, stands at 52, indicating a relatively stable market. The inventory of single-family homes has decreased to 18, further contributing to the Seller's Market zone and driving prices upward.
Price appreciation has been consistent, and we are witnessing an upward trend. However, it is important to monitor the Market Action Index as an indicator of how long this trend will persist. As we are still some distance away from the market's price high point, there is potential for continued price growth.
When analyzing the data reported by Massachusetts Association of Realtors (MAR) between June 2022 and June 2023, we observe the following changes in the market for single-family homes in Cambridge:
- Pending Sales: There was a 20% decrease in pending sales, with numbers dropping from 15 to 12.
- Closed Sales: Closed sales, on the other hand, increased by 33.3%, rising from 6 to 8.
- Median Sales Price: The median sales price experienced a significant 21.1% increase, climbing from $1,775,000 to $2,150,000.
- Cumulative Days on Market: The average cumulative days on the market saw a 28.6% increase, going from 21 to 27.
- Sale to List Price Ratio: The sale to list price ratio also rose slightly, from 104.3% to 109.2%, indicating strong buyer demand.
The median list price for condos in Cambridge, MA currently stands at $1,298,500, showing a slight decrease compared to the previous month. The market action index is at 61, indicating a cooling market, and the inventory has decreased to 78 units.
Although prices have plateaued recently, the Seller's zone suggests that changes in the Market Action Index (MAI) could influence future price movements. If the MAI resumes its climb, prices are likely to follow suit. However, if the MAI consistently drops or falls into the Buyer's zone, downward pressure on prices may be expected.
When analyzing the data reported by Massachusetts Association of Realtors (MAR) between June 2022 and June 2023 for condos in Cambridge, the following trends emerge:
- Pending Sales: There was a slight decrease of 10.8% in pending sales, dropping from 74 to 66.
- Closed Sales: Closed sales experienced a 6.9% decline, with numbers decreasing from 87 to 81.
- Median Sales Price: The median sales price increased by 3.3%, rising from $920,000 to $950,000.
- Cumulative Days on Market: There was no change in the average cumulative days on market, remaining at 28.
- Sale to List Price Ratio: The sale to list price ratio decreased slightly from 105.2% to 102.5%.
The Cambridge real estate market for both single-family homes and condos remains resilient, with steady price growth and high buyer demand. Single-family homes continue to experience price appreciation, while the condo market has shown signs of plateauing. The Seller's Market zone persists for both property types, indicating favorable conditions for sellers.
It is important for prospective buyers and sellers in Cambridge, MA to closely monitor the key indicators to make informed decisions. As market dynamics can change over time, staying up to date with the latest trends and data will provide valuable insights for navigating the Cambridge real estate market effectively.
Below is a market report derived from the MLS highlighting the trends observed in the Cambridge real estate market in the second quarter of 2023. This comprehensive report provides graphical representations and further details for a more in-depth analysis.
By referring to this report, you can gain a broader perspective on the market trends and developments that have shaped the Cambridge real estate landscape during that period. It can serve as a valuable resource to supplement the information provided in this article and aid in making informed decisions regarding your real estate endeavors in Cambridge.
For a more tailor-fit perspective or personalized information specific to your situation, it is highly recommended to consult with a professional real estate agent or broker. They have the expertise and local market knowledge to provide personalized guidance and assist you in making the best decisions based on your unique requirements and goals.
Remember, the real estate market is dynamic, and ongoing monitoring of market updates and trends, coupled with professional advice, is crucial for successful outcomes.