Cambridge Condominium Market Update, May 2014
The condominium market in Cambridge has seen many changes in the past 10 years. This month we analyze the key market data to help developers, investors, sellers, and buyers to understand the condition of the condo market. The 5 market metrics that we examined are:
- Median Value
- Number of Sales
- Days on Market
- Sale to List Price Ratio
Median value increased from 2004 - 2007. During the financial crisis years of 2008 and 2009 median value declined by less than 3%. From 2011 to 2014 values have increased a hefty 28%. Appreciation has been driven by a lack of inventory and buyer demand driven by low mortgage interest rates and an improved local economy.
Number of Sales
The number of sales increased from 2004 - 2006, mirroring the growth in inventory. During the financial crisis years of 2008 and 2009 the number of sales decreased. Although inventory has fallen the number of sales increased from 2010 - 2013. This is an indication that demand for condos remain strong.
Days on Market
The number of days on market increased significantly from 2005 - 2007 peaking at an average of 110 days. As inventory has decreased days on market has steadily decreased reaching a low of 34 days in 2014
Sale to List Price Ratio
Sale prices relative to list prices have remained in the 97 - 99% range from 2004 - 2013. As inventory decreased dramatically in 2013 and into 2014 many condo listings attracted multiple and over asking price offers. This has driven the sale to list price ratio up to 103% in 2014
The number of units on the market from 2005 - 2008 was inflated by several large condo projects, such as Regatta Riverview, Glass Factory, and One First. Once these projects sold out development activity greatly slowed leading to a significant reduction in inventory. The number of condo units on the market on May 20, 2014 was down an incredible <b>86.8%</b> from May 20, 2006.
2014 Condominium Market Summary
The condominium market has been in an appreciating cycle since 2008. The current market is a seller's market with historically low inventory levels. Demand is exceeding supply with multiple offers significantly over asking price occurring frequently.
Values are in thousands. All data from MLS PIN.