Posted at 1/29/2013
The Cambridge residential market in 2012 was characterized by a record low inventory (-50% from 2011) and yet a very strong demand, stimulated by record low interest rates (
Sales were up 17% in number of properties sold and 25% in gross Sale volume, and prices have jumped up under the high demand with an Average Sale price up 5% and a ratio List Price / Sold Price close or over 100%. The market has indeed experienced multiple bids on most properties listed this year.
The single family market in Cambridge represents 12% of all sales with 127 single family sold in 2012 (similar to the years before) and is a very competitive market with properties selling 102% over asking price.
The Multi Family market (9% of all sales) records +56% of sales in 2012 and a +16% increase in median price and +7% in average Sale price. This market was the most competitive market (Sales 103% over asking price) drawing foreign and national investors, developers and owner-occupants.
With a pent up demand built over the past year, higher cost to rent, low inventory and interest rates anticipated to remain at a record low (3.5%) at least until the end of 2013, the market will remain a Seller’s Market and buyers will still have to make quick informed decision and sustain the pressure of a strong market which will expose all of us again to multiple offers. That said, with rising prices and as home owners have built more equity in their home, I am confident the market will show an increase in homes for sale.
CAMBRIDGE Sales Comparison Year 2012 vs. 2011
Table 1: All Properties
| Cambridge ALL PROPERTIES | Year 2012 | Year 2011 |
|---|---|---|
| Total Sold | 1042 (+17%) | 884 |
| Ratio List / Sold | 99% | 97% |
| Av. Days on Market | 55 | 80 |
| Average Sale Price | $631,382 (+5%) | $599,300 |
| Median Sale Price | $482,500 (3.7%) | $465,000 |
Table 2: Condos only
| Cambridge CONDOS Only | Year 2012 | Year 2011 |
|---|---|---|
| Total Sold | 828 (+16%) | 711 |
| Ratio List / Sold | 99% | 97% |
| Av. Days on Market | 56 | 82 |
| Average Sale Price | $509,805 (2%) | $497,900 |
| Median Sale Price | $446,125 | $422,000 |
Table 3: Multi-Family only
| Cambridge MULTI FAMILY Only | Year 2012 | Year 2011 |
|---|---|---|
| Total Sold | 94 (+56%) | 60 |
| Ratio List / Sold | 103% | 97% |
| Av. Days on Market | 45 | 74 |
| Average Sale Price | $954,686 (+7%) | $894,082 |
| Median Sale Price | $899,500 (+16%) | $775,000 |