The greater Boston real estate market has had an inventory problem for about two years now, but the situation in Cambridge, Massachusetts is pretty amazing.
The real estate industry considers about six months of inventory to be a balanced market between buyers and sellers, so sellers clearly have the upper hand in Cambridge right now.
The number of condominiums available in Cambridge in March declined 52.7 percent to 35 available units from 74 units in March 2014. Similar to single-family houses, months supply of condo inventory declined 45.5 percent to 0.6 months from 1.2 months in March 2014. Three years ago in March 2012 there 140 condos on the market and 2.3 months of supply.
The tight inventory has driven up median prices. The median home price increased 41 percent on 19 sales in the first quarter to $1,375,000 from $975,000 during the first three months of 2014. There were 15 sales in Q1 2014. There were seven sales in March, up from just four in March 2014. The median price in March was $1,525,000. There were 14 new listings in March.
The median condo price increased 9.3 percent to $619,000 in March compared to $566,500 in March 2014. From January through March, the median price of a condominium increased 6.5 percent to $589,000 from $553,250 during the same three-month period last year. New condo listings declined 31.8 percent to 58 from 85 in March 2014.
Cambridge single-family home buyers paid on average 100.4 percent of the original list price in March and 102.1 percent of the original list price during the first quarter. Condo buyers paid on average 105.2 percent of the original list price in March and 104.4 percent of the original list price during the first quarter.