Posted at 2/6/13
Year 2012 was a crazy year for Cambridge real estate market. If you were there as a buyer of real estate property, you might have encountered multiple offer from different real estate agents for a seller. Or you might have lost a real state property in after 2 bidding wars. If you are a seller, you might have been surprised to by receiving multiple offers from multiple real estate investors at the price you put up on your property.
Cambridge real estate housing market inventory was very low – in the entire year of 2012, the latest inventory of Cambridge residential real estate market was down at forty to fifty percent compared to the inventory of previous years. Almost all types of residential real estate property inventory were down including single houses, apartments, condominiums units and new construction projects.
The demand was up – a variety of factors affected the rise of the demand, such as rising rents, lease renewals between renters and tenants and especially low interest rates record.
Typical Multiple offers situations – I re-posted “Dealing with a Multiple Bid Situation – Advise for sellers and Buyers” to anticipate the competition in the Cambridge residential real estate market in 2013.
A lot of inspection contingencies and many real estate buyers came offer cash – not all buyers who want to buy a residential real estate property will bring cash, that year was the very tough year in Cambridge real estate market. The competition to buy the best real estate property was bit tough, those people who have the ability to bring cash and take the risk make all the things challenging to both buyers and sellers.
Driving up prices – the years of flat sales in the Cambridge real estate market were over in 2012, and prices of real estate proper are going up. The most interesting thing in 2012 was that because the data was pulled from MLS, most media reports of the price increases didn’t even come close to representing the extremity of these increases in our market. The ratio of 2012 sales/asking prices in the Cambridge residential real estate market has a very big difference from the ratio in 2011.
838 condos were sold in 2012 (79% of all housing) at an average price of $510,758. Before that year, 714 condominium units were sold, and the average unit price was 498,229 dollars. The MLS analysis shows that Cambridge condominium unit’s prices increased 2.5% in year 2012.
If you are a real estate buyer, you have to stay there because Cambridge real estate market is a crazy market. However if you have the resources and you have secured finances, your expectation will be in reality. If You have made the true commitment in finding a better residential real estate property for you and your family, Cambridge is a better place to make a home.