Cambridge Market Update For December 2022

Below you will find a Cambridge Market Update for December 2022, which will provide information on the local real estate market and recent sales activity in your 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 December 2022

The slowdown in real estate definitely wasn’t imagined in 2022,

The average sale price is down 21% from the previous December, and there were 33%

fewer homes sold this month. In fact, there were fewer homes sold in 2022 than in any other year in the last decade.

And yet, it isn’t all doom and gloom—far from it. If we look at where average house prices were pre-pandemic—in March 2020, the average sale price was $540,287—we have increased 20.5%. We are now at $680,187; that is a very strong appreciation in just under three years.

By the time we reached the last days of December, homes in Cambridge had returned to prices last seen in early 2021. However, looking at the early numbers for January, it looks like average sales prices are going to increase substantially.

Inventory has increased compared to what we had been seeing earlier in the year. It is still only at 2.17 months, which is normal.

As far as interest rates go, we did see the government increase them another 25 basis points on January 25th. If interest rates decline in the last quarter of 2023 or early 2024 like they are predicted to do, we will most likely see a lot of pent-up demand.

The current market is a great opportunity for buyers, it is a nicer market to buy in. I recommend a 1- or 2-year fixed rate or variable rate. It is also great for investors: rents are high, prices are down, and if it can cash flow with the current interest rate, it will only improve as the interest rates go down.