Prices Dropping in Cambridge MA?

What Happened to Cambridge?!?

I keep a pretty close tab on market stats which helps me catch trends generally faster than most. 

But that quickly changed when I had a potential seller client that I spoke to last year reach out. They were thinking that this Spring market made sense to move forward with the sale of their condo. So I pulled the data and reran an analysis and almost fell off my chair. 

What happened to the Cambridge market? Has it spread to Boston? 

Oh, Real quick. My name is Jeff Chubb and I am a retired investment banker turned real estate agent that has sold more than a 1,000 homes. If you have real estate questions, then know that I am here to help. 

The year over year stats for Cambridge are shocking. It’s left me scratching my head with what is to become. 

Year to date in 2024, there have been 102 Cambridge Condos sold for an average sales price of $1,082,477 and a median price of $919,000. 

Compare this to the same time period in 2023. There were 107 Cambridge Condos sold for an average sales price of $1,211,732 and a median price of $975,000. 

So that means that sales are down by 4.7 percent. Okay. Who cares?

But the average price is down by 10.7%.

The median price is down 5.7%. 

Big difference. And in this case, I think it makes sense to believe the median pricing over the average pricing data… Even with the big sample size of data!

The reason is that in 2023, there have been 25 properties sold for $1.5 million or more. That number swells to 52 condos when you factor in sales that were $1 million or more. 

This is compared to the 21 properties that have sold for $1.5 million or more in 2024. And only 40 properties that were sold for $1 million or more. 

While sales were down by only 5%, the higher end sales are down at a disproportionate amount. And this is why I believe that you really want to use the median pricing data. 

So what has happened in the Cambridge Condos For Sale market?!? I have to say. I did not expect this. Now for the record, I have been saying that the Massachusetts condo market is weaker than the Single Family market… But like I said. I was shocked. 

So has it spread to Boston Condos For Sale or is Cambridge just a one off?

Year to date there have been 794 condos sold in Boston. The average sales price was $1,116,933. The median price was $740,000. 

This is compared to 2023 when there were 902 Boston condos sold for an average sales price of $1,052,548 and a median price of $725,000. 

This means that the sales levels were down by 12%. 

The average price was up by 6.1% and the median price was up by 2%. 

Was there anything that was disproportionately throwing off the data like we saw in Cambridge? 

Yes. Kind of. There were 123 Boston condos that sold in 2023 that were over $1.5 million. In 2024 this is 133 units year to date. 

So the total amount of sales are down by 12%, but in the higher end market have seen sales levels up by 8%.

I believe the median data is the better indicator here as well. 

So ya, what the heck is going on in Cambridge? I smell some great opportunities for Cambridge home buyers… Especially in the traditionally slower Fall Market. 

Why do you ask? It’s because inventory is up to 109 units currently on the market. This is compared to the 75 condos that were on the market today in 2023. That means inventory is up by 45%. 

Traditionally inventory only continues to climb in the Spring to Summer market.

In the last three months there have been 85 condos that have sold in Cambridge. This means that on average 28.33 condos sell per month. So that means that the Cambridge market currently has 3.85 months of inventory on the market. 

0 to 5 months is considered a seller’s market. This market is weakening. And it’s weakening fast. 

And if you are a property owner in Cambridge who is looking to sell, then it seems that the best time to put your house on the market was yesterday. I am happy to talk to you about your property as well as your goals to figure out the best timeline that allows you to maximize your sales price. 

Again, it’s Jeff Chubb. Don’t hesitate reaching out with questions or if you are thinking about buying or selling a house. It would be a true pleasure to help. 

Until next time.  

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