Market Conditions for Cambridge, Massachusetts Reported by Bob Filene, REALTOR, CBR, e-PRO Updated October 22, 2009.

Current Market Rating: 3 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 3 1 2 3 4 5 Falling Rising

CAMBRIDGE:

October 1, 2009

There is general agreement now among economists that the bottom of the real estate market has passed in the Boston area. Condo prices in Cambridge have increased month over month vs. 2008 for the past three months. Beyond the sound fundamentals of Cambridge/Somerville, extremely low interest rates, reasonable prices, and the first-time buyer tax credit are stimulating maket activity.

Is there a lot for sale in Cambridge?

No. The number of properties for sale in Cambridge is about the same as a year ago. Brokers agree what we need more properties to match with the buyers.

Are prices down a lot?

Median sale prices in Cambridge for 2009 so far compared to this period in 2008 are:

Condos down 1% (the largest part of the market),
Single families down 4%,
Multi-families down 3%.

How long are properties staying on the market?

Average days on market (DOM) for properties sold so far this year is 78 days vs. 92 days for this period last year. Average DOM for active properites is 120 days.

Are the number of sales down?

Yes, the number of sales in Cambridge this year so far is down 13% from this period in 2008.

What does the current absorption rate tell us?

A good measure of the market is the current absorption rate (the number of months it would take to sell the current inventory if it sold at the same rate as during the past 12 months). A 7 to 8.5 month inventory is considered normal in Massachusetts. The Massachusetts backlog reached 17 months in the 1990 recession. Currently in Cambridge we have a 5.1 month supply.

Are properties selling way below the asking price?

For properties sold in Cambridge so far this year, the average sale price is 95% of the original asking price and 97% of final asking price.

General Comments

Interest rates are still near 40 year lows. However, lenders have tighten up their qualifying criteria requiring larger downpayments in some cases and higher rates for condominiums where the owner-occupancy is below 50% or one owner owns more than 10% of the units.

Data Source MLSPIN

Copyright Bob Filene c 2009


ZIP Codes: 02138, 02139, 02140, 02141, 02142

Location Characteristics: Cambridge, best known for Harvard University and M.I.T., provides an exciting array of intellectual and cultural events with an international flavor. The housing stock has a wide range including small "workers cottages", condominiums of all sizes, multi-family homes, Victorian mansions, and luxury full-service buildings. Cambridge has a thriving industrial base, much of it as spin-offs from M.I.T. and Harvard. Currently biotech and internet-related companies are most numerous. Cambridge has several large parks as well as the Charles river for recreation. Cambridge was named as the best walking city in America according to Prevention magazine in their April 2008 issue and the American Podiatric Medical Association.

Go to www.bobfilene-realestate.com for more information.

The Cambridge real estate market has been good to buyers and sellers for many decades. Our universities, biotech, and computer centers are world famous. People have always been drawn to our cultural offerings, diversity, and ideal location on Boston's "left bank". Cambridge has fared better than neighboring towns in previous market adjustments.

Want to search the MLS for listings? Be sure to visit www.bobfilene-realestate.com where you can see all properties in the Multiple Listing Service that meet your needs,find your Dream Home, and find a wealth of real estate information... all just a click away!


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