Price Growth in Cambridge and Somerville
It's no surprise that Union Square and East Cambridge saw high levels of appreciation 2006-2015. Both were at very accessible locations while being relatively affordable compared to Kendall Square, Central Square and Harvard Square. There was a shortage of properties at price points that were accessible to first-time home buyers. The young, trendy nature of Union Square and Davis Square continued to attract millennials. 2016 saw similar trends though data suggests that inventory was even more scarce in these neighborhoods compared to 2015. Where are we heading in 2017? Slightly higher interest rates should soften the price growth, though with the inventory still low and buyer demand much higher, we are seeing a even more competitive market than 2016 for bidders, and especially in the metro areas.
