Blog by Ed Abrams

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How is the Fall 2013 Market?

One question that we hear frequently is: "how is the market this fall" In this issue we review the market data to determine if the spring and summer seller's market has continued into the fall.

Measuring the Market

The key metric to determining whether the market favors the seller or buyer is absorption rate. Absorption rate measures how quickly the current inventory will stay on the market relative to the volume of sales in the past. Simply put the absorption rate defines the balance between supply and demand. In our experience a seller's market is when there is over a six month supply.

Cambridge Fall Market

Based on the absorption rate metric, Cambridge is currently a strong seller's market. As of November 5, 2013 there were 1090 units of residential housing (single family, condo, and multifamily) sold in the past 12 months. On this date there are only 67 units on the market. The absorption rate is 0.74 months, or just 3 weeks of inventory.

With demand exceeding supply this fall sale median sale prices are up 24.6% as compared to 2012 (median prices for August through November).

Data Source: MLSPIN

Somerville Fall Market

Based on the absorption rate metric, Somerville is currently a strong seller's market. as of November 5, 2013 there were 711 units of residential housing (single family, condo, and multifamily) sold in the past 12 months. On this date there are only 65 units on the market. The absorption rate is 1.1 months.

With demand exceeding supply this fall sale median sale prices are up 26.2% as compared to 2012 (median prices for August through November).

Data Source: MLSPIN

Is this a Good Time to Sell?


Since the best time to sell is in a seller's market now is a great time to sell. Inventory is extremely low and there are numerous buyers that could not find a home to buy in the spring and summer. These buyers are anxious to buy now to take advantage of very low interest rates. There is no reason to wait until the spring market to sell.

Many homes sell in November and December. For example, 226 homes with a value of $158,385,231 in Cambridge and Somerville went under agreement between November 1, 2012 and December 31, 2012.
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