The city of Somerville, Massachusetts, has long been a desirable location for homeowners and investors alike. Its proximity to Boston, charming neighborhoods, and vibrant cultural scene makes it an attractive place to call home. Let's delve into the real estate market in Somerville, focusing on the key differences between single-family homes and condominiums. We will examine data from June 2022 and June 2023, as well as year-to-date comparisons to understand market trends and shifts.

Market Overview

As of July 19, 2023, the median list price for single-family homes in Somerville stands at $1,412,000, with a market action index of 61, indicating that the market is still in the Seller's zone. However, it is worth noting that the market action index has decreased from 72 last month, suggesting a cooling trend. On the other hand, the median list price for condos is $991,500, with a market action index of 45, also signaling a cooling market.

Single-Family Homes: June 2022 vs. June 2023 Comparison

1. Pending Sales

In June 2023, the number of pending sales for single-family homes increased by 29% compared to June 2022. This surge in pending sales indicates a stronger demand in the market.

2. Closed Sales

Closed sales for single-family homes in June 2023 showed a significant increase of 50% compared to the same month in 2022, reflecting a higher level of completed transactions.

3. Median Sales Price

The median sales price for single-family homes experienced a slight decline of 6% from June 2022 to June 2023. This decrease might be attributed to the cooling market and an increase in inventory.

4. Cumulative Days on Market Until Sale

June 2023 witnessed a substantial increase of 173% in cumulative days on the market until sale for single-family homes. This rise indicates that properties are taking longer to sell, which aligns with the cooling market conditions.

5. Sale to List Price Ratio

The sale-to-list price ratio decreased by 14% from June 2022 to June 2023, suggesting that sellers are facing more negotiation room as the market cools.

6. New Listings

In June 2023, there was a 29% reduction in new listings for single-family homes compared to the same month in the previous year. This decrease in supply could have contributed to the cooling market conditions.

Single-Family Homes: YTD Comparison

1. Pending Sales

From January to June 2023, there was a 20% increase in pending sales for single-family homes compared to the same period in 2022. This steady growth indicates sustained interest from buyers.

2. Closed Sales

The number of closed sales for single-family homes in YTD June 2023 decreased slightly by 7% compared to the same period in 2022. This modest decline could be attributed to the cooling market.

3. Median Sales Price

The median sales price for single-family homes experienced an 11% decrease from YTD June 2022 to YTD June 2023, reflecting the impact of the cooling market on property values.

4. Cumulative Days on Market Until Sale

The cumulative days on the market until sale for single-family homes in YTD June 2023 increased by 119% compared to the same period in the previous year, indicating a slowdown in the selling process.

5. Sale to List Price Ratio

The sale to list price ratio decreased by 8% from YTD June 2022 to YTD June 2023, signifying increased negotiation opportunities for buyers.

6. New Listings

In YTD June 2023, there was a 10% reduction in new listings for single-family homes compared to the same period in the previous year, potentially contributing to the cooling market conditions.

Condominiums: June 2022 vs. June 2023 Comparison

1. Pending Sales

In June 2023, pending sales for condos increased by 23% compared to June 2022, indicating a robust demand in this market segment.

2. Closed Sales

June 2023 saw a minor decrease of 2% in closed sales for condos compared to June 2022, indicating relatively stable market activity.

3. Median Sales Price

The median sales price for condos witnessed a 10% increase from June 2022 to June 2023, showcasing a positive trend in condo values.

4. Cumulative Days on Market Until Sale

Condos experienced an 18% reduction in cumulative days on the market until sale in June 2023 compared to the same month in 2022, indicating a faster selling process.

5. Sale to List Price Ratio

The percentage of the original list price received for condos decreased by 4% from June 2022 to June 2023, potentially signaling a slight shift in favor of buyers.

6. New Listings

In June 2023, there was a substantial 44% reduction in new condo listings compared to the same month in the previous year, contributing to the cooling market conditions.

Condominiums: YTD Comparison

1. Pending Sales

From January to June 2023, pending sales for condos increased by 23% compared to the same period in 2022, indicating sustained demand.

2. Closed Sales

The number of closed sales for condos in YTD June 2023 decreased slightly by 2% compared to the same period in 2022, suggesting relative stability.

3. Median Sales Price

The median sales price for condos experienced a 10% increase from YTD June 2022 to YTD June 2023, reflecting positive growth in condo values.

4. Cumulative Days on Market Until Sale

Condos witnessed an 18% reduction in cumulative days on the market until sale in YTD June 2023 compared to the same period in 2022, indicating a faster selling process.

5. Sale to List Price Ratio

The percentage of the original list price received for condos decreased by 4% from YTD June 2022 to YTD June 2023, suggesting a slight shift towards more buyer negotiation power.

6. New Listings

In YTD June 2023, there was a significant 44% reduction in new condo listings compared to the same period in the previous year, contributing to the cooling market conditions.

The real estate market in Somerville, Massachusetts, has experienced notable changes over the past year. While both single-family homes and condos have seen shifts in their respective markets, condos have generally shown more resilience, with a positive trend in median sales prices. On the other hand, single-family homes have experienced more pronounced cooling effects, with a decrease in median sales prices and an increase in cumulative days on the market until sale.

As of June 2023, both property types have seen a reduction in new listings, contributing to the overall cooling market conditions. Buyers may find increased opportunities for negotiation, while sellers should be prepared for a more competitive landscape.

As with any market, it's essential for potential buyers and sellers to stay informed about the latest trends and consult with real estate professionals to make well-informed decisions. The data provided here serves as a snapshot of the market as of June 2023, but market conditions can continue to evolve. Understanding the nuances between property types and monitoring market indicators will be crucial for navigating the dynamic real estate landscape in Somerville.