Known as the home of Harvard University and with an array of art museums, green spaces, unique boutiques, and impressive architecture to explore, Cambridge is a bustling Massachusetts city with plenty of heart just a few miles away from downtown Boston.
If you’re intrigued by all that Cambridge has to offer and hoping to make a move to this incredible city, you need to understand the current Cambridge real estate market. That way, you can start your home search with confidence. With expert insight from trusted local agent Scarlett Tamburro, here’s what you need to know about the housing scene.
The Cambridge housing market
According to the Massachusetts Association of Realtors, closed sales have been down across the state compared to last year, with 2,552 closed sales for single-family homes compared to 3,045 last year.
Within Middlesex County, closed sales have also dropped by 17.1% from March 2022 to March 2023. The median price of single-family properties throughout Middlesex County has also held relatively steady, increasing by a modest 4.3% since last year and staying level year-to-date. Condos in the county have fared similarly, with a 13.5% decrease in closed sales and a 1.3% increase in the median price over the past year.
Zooming into the Cambridge housing market specifically, we can see a similar trend. Closed sales for single-family Cambridge properties have decreased by 14.3% since last year. Also, while the median sales price has dropped slightly (by 7.9%) compared to March 2022, it’s important to note that year-to-date, the median sales price has risen by 24.5%. The median sales price of condos in Cambridge has also increased by 42.5% since March 2022 and by 14.2% year-to-date.
While inventory has risen, there are still only 2.9 months of available inventory for Cambridge single-family homes and 1.6 months of inventory for condos. Buyers are actively looking for properties, and the number of homes for sale can’t keep up with the level of demand from buyers. This means sellers can ask for higher prices and still receive qualified offers.
As a buyer, it’s essential to work with an experienced real estate agent like Scarlett Tamburro as soon as you’re ready to start looking at properties. Since demand for properties is so high, working with a trusted local agent will help you find homes as soon as they go on the market. Without their guidance, you risk missing out on properties.
How competitive is the Cambridge housing market?
The Cambridge real estate market is currently experiencing a seller’s market, with only 2.9 months of available inventory of homes for sale. This means there are more buyers than homes available, and thus, buyers must compete against one another for the most sought-after properties.
The more competitive the market is, the more beneficial an experienced real estate agent will be in your home search. They’ll be able to help you identify the best properties for your needs and help you devise an offer that sellers will be more likely to accept over all the rest.
Tips to help you make a competitive offer
In a competitive market, you must be prepared to make competitive offers. Here are a few tips to help you do just that.
Avoid asking for concessions
If you know that other buyers are interested in the same property, you’ll want to avoid asking the seller to make certain concessions as part of your offer. Plan on fixing minor repair issues yourself, and don’t ask them to include pieces of furniture, decor, or other personal effects.
Be prepared to offer the asking price (or more!)
Of course, it’s normal to want to get a great deal when you’re buying a home! However, if other buyers are making offers below the asking price, you’ll stand out if you offer even slightly more. An experienced real estate agent like Scarlett Tamburro will give you advice on crafting a compelling, competitive offer that is sure to stand out.
Get pre-approved for financing
Deals often fall through at the last minute because buyers fail to secure financing until after making the offer. Instead, get pre-approved for your loan before you begin shopping for homes and making offers on properties that fit your needs. With your pre-approval letter in hand, you’ll be ready to show sellers proof of qualification to give them confidence in your offer.
The cost of living in Cambridge
It should come as no surprise that living close to Boston commands a higher price tag; in fact, the cost of living in the area is 73% higher than the national average. This means you’ll pay more for essentials like utilities, housing, transportation, food, and clothing. If you’re thinking of relocating from Western Massachusetts, you’ll find prices higher than you’re used to. However, if you’re moving from New York City, San Francisco, or one of the other tech hubs, you’ll find that the cost of living in Cambridge is lower.
What to expect for the rest of 2023
The Cambridge real estate market is likely to stay competitive for the rest of 2023 and into 2024. This means buyers must be ready to make a strong offer on a home as soon as they find one that fits their wish list. Here’s what you can expect for the rest of 2023.
Prices
Though prices remain higher than what you’d see in most other cities in the state, some buyers may have a chance to negotiate for a slightly lower price. With homes taking longer to sell, many sellers may be more open to making concessions or lowering the asking price in the hopes of making a quicker deal. This is excellent news for buyers looking to invest in the area.
Interest rates
Higher interest rates can make financing a new home slightly more expensive, but higher rates can also deter other buyers from entering the market, lowering the competition. If you find a dream home but feel hesitant due to the interest rates, it’s important to remember that you may be able to refinance later down the line.
Are you ready to start looking for your dream home?
2023 is the perfect time to make moves in Cambridge real estate. If you’re ready to start your home search or sell your beloved property, reach out to experienced real estate agent Scarlett Tamburro. Scarlett is ready to guide you to an amazing new home or help you sell for top-dollar offers.
