Market Snapshot – January 2022

The new year is off to a good start with strong activity in the Cambridge real estate market. Interest rates continue to remain low which is padding the pockets of many people who are looking at diversifying their portfolios by investing in real estate. More houses hit the market in January then in the previous month, but not enough to relieve the hot buyer’s market we have seen over the last year.

Cambridge Association of Realtors® reported 103 total units sold in January, 2022 which coincidentally is the exact same amount as this time last year.  But don’t expect 2022 to play out like last year.  Even though there were the same number of sales, the dollar value grew 41% and that is not a typo.  When looking at all sales in Cambridge, the average price in January 2021 was $667,723 and just one year later the average is now $946,644.

Of the 103 homes sold, 85 were single family freehold (townhouse, semi-detached), 18 were condos and 66 were freehold detached.  Despite condos representing the smallest ratio, these properties saw the largest appreciation since January 2021, with over 61.46% increase in the average dollar value.

Given light of the positive start to the year, things may be disrupted subtly sometime in the second quarter when the Bank of Canada releases a new communication reflecting potential rate changes.  They know that they need to address inflation, as well as the elevated debt levels.  However, it is unforeseeable how all this will truly shake out.  What is inevitable, is that the rates will change, but by how much and when.

“Time is not refundable, use it with intention because a year from now you will wish you would have done things differently.”

If you want to discuss what’s happening in the market, or maybe the process of buying or selling, I am always ready to have that conversation.  All you have to do, is reach out by filling out the form and we can chat more over coffee.