Somerville Condominium Market Update, May 2014
Median value increased from 2004 - 2006. From 2006 - 2010 median value remained stable. From 2010 to 2014 values have increased by a significant 24.6%. As in Cambridge, appreciation has been driven by a lack of inventory and buyer demand driven by low mortgage interest rates and an improved local economy.<br><br>
Number of Sales
The number of sales increased from 2004 - 2006, mirroring the growth in inventory. From 2007 - 2009 sales decreased by 46%. In spite of decreasing inventory, from 2010 - 2014 sales have increased. As in Cambridge, this is an indication that demand for condos remain strong.
Days on Market
Mirroring Cambridge, 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 - 100% 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 many multifamily to condo conversion projects. 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 amazing <b>91.36%</b> from May 20, 2006.
2014 Condominium Market Summary
The Somerville condominium market trends are nearly identical to Cambridge. However, the market is strongest in neighborhoods closest to Cambridge and the Red Line subway stops of Davis and Porter Squares. Condos that are further than a 15 minute walk to the Red Line are receiving fewer offers and are staying on the market longer.
Values are in thousands. All data from MLS PIN.