Cambridge now has the highest home prices of any city or town in the Bay State, edging out perennial front runner Brookline.
The median price of a single-family home in Cambridge hit $1,675,000 during the first four months of 2016, a 28 percent increase over last year, The Warren Group, publisher of Banker & Tradesman, reports.
Brookline saw its median home price fall 4 percent during the same period, to $1,615,000.
Cambridge has also blown past a number of other upscale suburbs to claim the top spot,including Lincoln ($1.4 million), Weston ($1.2 million) and Newton ($1.1 million). Not to mention Nantucket ($1.4 million), according to The Warren Group.
Surging demand from everyone from university professors to biotech executives has combined with a shortage of homes for sale to drive Cambridge home prices to all-time highs, real estate experts say.
In fact, even as prices have soared, home sales have plunged 19 percent so far this year in Cambridge amid a dwindling number of homes on the market.
“It’s just nuts,” said Merit McIntyre, president of Coldwell Banker Brokerage in New England, who helps employees of Harvard and affiliated institutions find homes in the state’s most expensive market. “From a buyer’s perspective, it’s difficult.”
How difficult can be seen in the time it takes for a home in Cambridge to find a buyer. In May, homes that hit the market in Cambridge had offers, on average, in 12.64 days. That’s compared to 50 days in towns just a few miles away, like Waltham or Melrose, where the median price is in the half-million dollar range, or a third of Cambridge’s.
A buyer, in turn, who can afford a $1.6 million house in Cambridge won’t be buying one of those gorgeous old Brattle Street mansions – you need upwards of $4 million for that.
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But the city’s median price may get an older four or five bedroom home near Harvard Square.
OK, you’ll need to be making at least $310,000 – combined or individually – and be able to shoulder $72,000 a year in mortgage payments, McIntyre said.
And if you want a decent shot at a house, you will also likely to have to drop all traditional safeguards – such as the inspection and mortgage contingencies – to land something.
“In Cambridge, where there is such a small supply of real estate, it is kind of scary, a lot of times you have to drop all contingencies,” he said.
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As an enthusiast and expert in real estate, particularly in the housing market dynamics and pricing trends, I have closely followed and analyzed the information presented in the article by Scott Van Voorhis, published on June 17, 2016. My extensive knowledge in this field allows me to delve into the nuances of the data provided and offer valuable insights.
The article discusses the home prices in Cambridge, Massachusetts, highlighting that Cambridge has surpassed Brookline as the city with the highest home prices in the Bay State. According to The Warren Group, the median price of a single-family home in Cambridge reached $1,675,000 during the first four months of 2016, marking a significant 28 percent increase compared to the previous year. This information is crucial as it reflects the current trend in the real estate market, emphasizing the growing demand for homes in Cambridge.
Brookline, which has traditionally been a front runner, experienced a 4 percent decrease in its median home price during the same period, settling at $1,615,000. The article further compares Cambridge to other affluent suburbs such as Lincoln ($1.4 million), Weston ($1.2 million), Newton ($1.1 million), and even Nantucket ($1.4 million), showcasing Cambridge's dominance in terms of home prices.
The surge in demand is attributed to various factors, including interest from university professors and biotech executives. The shortage of available homes for sale is identified as a significant driver of the skyrocketing home prices in Cambridge. Despite the substantial price increase, home sales in Cambridge have experienced a 19 percent decline in the first few months of the year due to the limited inventory.
Merit McIntyre, president of Coldwell Banker Brokerage in New England, provides valuable commentary on the challenges faced by buyers in Cambridge. McIntyre notes the unprecedented nature of the market, emphasizing the difficulty for buyers, especially in terms of the time it takes for homes to find a buyer. The data indicates that homes in Cambridge receive offers, on average, in just 12.64 days, a remarkably short period compared to neighboring towns.
Additionally, McIntyre sheds light on the financial requirements for purchasing a home in Cambridge, specifying that a buyer looking for a $1.6 million house in Cambridge needs to have a combined or individual income of at least $310,000. The annual mortgage payments are estimated at $72,000, underscoring the financial challenges associated with buying a home in this high-priced market.
Furthermore, the article discusses the necessity for buyers to forgo traditional safeguards, such as inspection and mortgage contingencies, to secure a property in Cambridge due to the limited supply of real estate. This insight highlights the competitive nature of the market and the lengths buyers may need to go to successfully acquire a home in Cambridge.
In conclusion, the information presented in the article provides a comprehensive overview of the real estate landscape in Cambridge, offering valuable data points and insights into the factors influencing home prices, demand, and the challenges faced by potential buyers.
