Pumpkin spice with a side of real estate
Well, it's fall, and the summer market shift seems to be continuing -- unsurprising given the ever-increasing mortgage rates, continuing inflation, a declining stock market, fears of recession... but wait... there's more!
Add to that the geopolitical turmoil and resulting food, fuel and energy shortages, and our increasingly apparent and scary climate *challenges* and we find ourselves in a bit of a pickle.
All that said, people need a place to live, and the Cambridge/Somerville area is highly desirable and homes here tend to hold their value. And really, this is a great opportunity for buyers who've been beaten up by the market in the last few years to get that home they've been dreaming of -- they definitely have more options right now. Here's our current inventory today compared with one year ago:
there are 35 single families available today, as opposed to 17 last year
there are 123 condos, as opposed to 112 last year
and there are 23 multis, as opposed to 18 last year
there are 22 single families available today, as opposed to 10 last year
there are 116 condos, as opposed to 109 last year
strangely, there are fewer multis -- only 34 today, as opposed to 52 last year
And yes, buying power has gone down with the higher interest rates, and buyers are feeling a bit skittish, so sellers may be getting a bit nervous, but while we can no longer expect every property to receive multiple offers and sell in the first week for 10-20+% over asking, the general expectation in the local real estate community is that our homes will still sell and sellers (assuming they've owned for five or more years) will still make a nice profit, and maybe... buyers might at the same time get a reasonable price. Or at least not have to waive all their contingencies and give away their first born in the process. And ultimately, this will be good a good thing for the market.
As all yogis know, balance is good.