Below you will find a market update report which will provide you with information on the local real estate market and recent sales activity in your specific area. Don’t hesitate to contact us if you have any questions or if you are ready to move forward with the next step!
Cambridge Market Update for April 2019
The numbers are in for April and this is what’s going on in the Cambridge real estate market.
Overall, when we look at the month of April this year it was really good compared to April 2018. The number of sales is up 17% from last April which is a large increase.
The number of active listings is down about 9% meaning inventory’s a bit tighter. We did see more new listings come onto the market this April compared to last year with 335 new listings, that’s up about 3% from April 2018.
Average Sale Price:
The average sale price across all housing categories is up 7% with an average sale price of $503,650. Diving into more detail:
Detached houses: up 7% with an average sale price of $533,141.
Attached houses: up 2% with an average sale price of $391,414
Condos: down 23% with an average sale price of $352,867. Before everyone freaks out last year was a fluke month: we saw the average sale price for condos shoot up dramatically and then it came right back down in May. It’s just that we had some higher-priced condos sell in April, which skewed the stats. If we look at so far year-to-date, the average sale price for condos compared to year-to-date of last year were up about 9% which is a good amount of appreciation this year over last year.
List To Sale Price Ratio:
For the houses that are selling, we’re seeing, on average across all the housing categories an average list to sale price ratio of 100%. That will fluctuate depending on what price point you’re in. The lower price points are more active, we’re seeing more of those houses sell for full list or over asking, whereas when you go over that $600,000 to a million, we’re seeing a little bit more negotiation. A million plus, we’re seeing a fair bit of negotiation. It depends on what price category you’re in. Looking at the houses that are selling, 49% of them are going to multiple offers and selling over asking, however over 80% of those are listed under $600,000. It shows you there’s a big difference between being in the lower price points compared to the higher price points.
Months of Inventory:
We’ve got 1.46 months of inventory which is down dramatically from 1.88 months of inventory that we had in April of 2018 meaning we’re in a lot more competitive market overall. Again, that will fluctuate.
Under $600,000: really, really strong sellers’ market.
$600,000 to a million: we’re still in a sellers’ market but it’s a little more balanced
Million plus: we go over into more of of a buyers’ market, but it’s normal in that million dollar plus price point to be in a buyers’ market.
Overall, when we look at how things have been going so far this year, average sale prices are up year-over-year 6% meaning we’re seeing a good amount of appreciation. It’s good that we’ve been seeing it not only just year-over-year but month-over month. Indicating positive housing price trends in the KW area.
Right now, with lower interest rates, it’s a fantastic time for people who are looking to break into the market. First-time buyers, get in & lock in a good rate. It’s one of the few times where you’re actually going to see a five year fixed rate just about the same as what your variable is, so take advantage of that.
For people who are looking to up-size, this is a great opportunity for you as well. Sell your house in that lower price point where it’s a really active market, and then buy a larger house in a more expensive price point where you’ve got a little more selection & can do a bit more negotiations.
If you are looking to downsize in this market, it is a little bit more challenging to be able to sell your larger house and pull out equity to buy something that has similar finishes in a lower price point. A lot of people who are downsizing right now are better to sell first, buy second. Unless you have the ability to carry both properties you don’t want to put yourself in the position where you bought a house and your larger house is taking longer than you expected to sell. For a lot of people who are actually looking to downsize, pull out equity and get something of similar quality it’s hard to do a lateral move right now in our market. A lot of people are deciding to sell in the Cambridge market and then go either further west where there’s lower price points, or further north, to be able to pull out that equity.
If you have any questions about the Cambridge real estate market please contact us and we will be happy to answer them for you.