I just want to give you an update on what happened in August in the Cambridge Real Estate market. According to my records, there were 173 residential sales which were down a little bit in comparison to last year by 27%.
The residential listing inventory, at the end of the month, was sitting at approximately 300 units, which to me really shows that the market values are holding their ground. This translates to 1.73 months worth of inventory. Experts tell us that anything below 6 months is still considered a seller’s market so that’s still very much the case. We’re currently sitting at about 292 listings for the month of September for the entire city so there’s not a lot of inventory for Buyers to pick from.
So far there’s been about 37 homes sold this month (September 2017).
The average price right now is sitting somewhere around $429,000. It (the average price) ended up last month at $ 434,471 and in July, it was $456, 318. So basically what it means more than anything else is the high-end market ($700,000+) has softened a little bit and that bread and butter homes today in Cambridge are still selling in the range of $430,000 to $440,000.
Right now the average days on the market is 26 days, which down significantly from what was going on in March and April which was about 13 days on the market. But we are talking about less than 30 days on the market so it is pretty good.
In terms of mortgage interest rates, they crept up a bit. The prime-lending rate right now is sitting at about 3.2% and the best variable rate that we can get is sitting around 2.4%, which constitutes an 80 basis point discount. The best 5year rate is also up at 2.75%, and of course, this rates depend on if you’re a high ratio mortgage or a conventional mortgage and how much you actually borrowing in relation to the value of the house which is referred to as the “loan to value” ratio.
My opinion on the market is still pretty optimistic. Buyers are obviously a little bit more cautious as conditional offers are back. The crazy cash offers are still around but certainly not in the abundance that they were in the spring. The typical conditions we are seeing inserted in offers are financing and inspection. In some cases, we are still getting multiple offers but not in the same frequency as the spring Obviously that market had to slow down as it couldn’t be sustained.
So that’s my take on the market for August of 2017 and if we can be of help to you or someone you know who needs our help, by all means, feel free to reach us at 519 624 9222 or you can email us at email@example.com