Somerville MA Real Estate Market 2017
The real estate market in Somerville during 2017 exceeded the performance of the previous two years. The Somerville housing market experienced a substantive increase in the overall prices during the previous year as well. During the period between 2015 and 2016, prices increased at a rate that approached 10 percent, for example. Data from this period helps investors and buyers to assess the market condition in 2017.
Because of the steady increase in prices, many real estate experts advise purchasing the home before another boost in the rates for mortgages during the last quarter of 2017. The rate of increase in prices during the year 2017 also reflects the consistency of this overall trend. Data sets clearly show that the prices for condominiums have been increasing at a stable rate over the previous five years.
Somerville is situated in a convenient location for anyone interested in relocating near the greater Boston area. The city is north of downtown Boston, which makes daily travel a viable prospect. The location of this city is ideal for commuters, but it is also a pleasant area for people who wish to relocate for local work. There is an area of around four square miles where the city is situated, and there are two watersheds on either side. The Mystic River and lower Charles watersheds also serve as a recreational asset to the nearby Boston and Charlestown residents.
The city is a pleasant area with a vibrant arts scene, galleries, annual festivals, good restaurants and schools. The nearby freeways include Route 28, which runs north and south along the city’s periphery. Commuters can use this freeway to travel to Boston for work, fun or socializing. The other main road for automobiles is called Interstate 93, and it runs through the local town. The Massachusetts Bay Transit Authority provides subway services to the area, which facilitates commuting from Somerville to the surrounding areas.
Overview of Real Estate Market in 2017
According to one of the most trusted real estate organizations, the median price for homes listed in the Somerville region hovered at around $610,000 during the past year. This represents almost a 9 percent increase in the home price within this region. The Boston Metro area itself reports a median rent price of only $2,600 compared to the higher range around Somerville. The median rent price in this area is estimated to be around $2,800, which represents a considerable investment opportunity for realtors, investors and other interested parties. The total estimate for home valuation rose over the last year 8.1 percent over the previous periods. This trend is expected to continue, and experts forecast a rise of almost 3 percent for the following year.
The price per square foot in Somerville is currently $590, and this is over 50 percent more than the average price listed for homes in the Boston Metro area. This price is also significant because it represents a significant increase in the price per square foot, which was estimated to be around $539 during the previous period. The rental price per square foot is also reported by real estate sources in the Somerville area, and the current estimate for this price it is now at $2.66 per square foot. Estimates hover around 4 percent as a rate of growth for the median rise in the rental price for units. The nearby areas around Somerville also affect the prices and valuation methods used to determine those prices.
Condominiums in Somerville
Overall, the local condominium market performed remarkably well relative to the surrounding areas where more of these properties are located. Somerville condominiums have been at the top of the radar for real estate investors who are looking for multi-family units, which are mostly concentrated in the surrounding cities and townships. These properties are conveniently located, and the area has a variety of amenities that attract people who want to live close to the downtown Boston area.
The Somerville condominium market is tracked through the same metrics used for the housing and commercial markets. It is also affected by the abundance of units that are available. The overall sales for condominiums tend to be higher than the number of single family homes, but this ratio largely reflects the availability of units. It is useful to review larger trends in prices during previous years in order to get the full perspective on the market. This can be done in addition to reviewing the current statistics for condominium prices in Somerville during the year 2017. For example, the prices for the least expensive condos were tracked during the 5-year period between 2012 and 2017.
The price for a condo in 2012 was around $155,000, and this increased to $250,000 in the second quarter of 2017. The median selling price is also an important statistic because it helps to eliminate the distortion effect introduced by the overall effect of the highest and lowest selling prices. In the case of the condominium market, the median selling price is remarkably close to the average. The median price is listed at $638,700, and this is a strong signal that the condominiums in Somerville are continuing to sell at the higher end of the price range. Although these condos are relatively rare, the units at the 1.5 million high-end of this range will impact statistics for average pricing, and this effect should be carefully considered by the buyers of condos in Somerville.
The performance of the condo market during the second quarter in 2017 was more consistent than the market in single family homes. These units experienced a decline in the average prices during the second quarter; however, the prices for condominiums did not taper during the same period. With the steady rise in prices, the condominium presents a more promising return on investment than the single family home. The average price for a sale during the second half of 2017 almost reached $700,000. The change from the previous year was also significant. During the same time in 2016, the average price for a condo was around $650,000. The consistent rise in the price indicates that this investment can provide a worthwhile return if prices continue to rise at this pace. The 12.27 percent increase during this period indicates a stable rate of growth, and this is good for the owners of condos in Somerville.
Real Estate Developments
Developments are closely associated with rising values in the local properties, and this includes single family homes as well as condominiums and business properties. Investors and buyers should carefully consider the various developments that are occurring in the adjacent areas around Somerville. This includes projects taking place in Assembly Square and Davis Square. However, the most significant development project is happening in the neighborhood around Union Square. Once the municipal approval for the project is finalized, this development will add an additional 1.3 million new square feet in civic structures, offices and additional public space. The addition of 5,000 new jobs also bodes well for the general real estate market because job growth is closely linked to rising values in properties.
General Real Estate News, Somerville MA
The real estate landscape in the greater Boston area around Somerville will also affect the overall prices as well as the median prices for homes, offices, condos and other properties. Somerville MA real estate trends closely follow various development projects, and this includes transportation networks. The Massachusetts Bay Transportation Authority, or MBTA, is authorizing a $2.3 billion rail project that will connect Union Square to the various areas around Boston. The effect of this project is significant to property owners in Somerville because it will make Union Square the new downtown area of this city. This is also important real estate news because of the proximity to MIT and Harvard. Experts in real estate trends express excitement about this project because of the anticipated effects of the new Green Line rail to the local economy. The combination of a multi-purpose commercial development and the addition of a major transportation network will create a ripple effect on the Somerville real estate market.
Property values for owners normally rise and fall in a pattern that is difficult to anticipate. However, general market trends and other indicators can help buyers decide if it is the right time to purchase Somerville MA condos for sale. The construction of the Green Line is a specific project that will have a lasting impact on real estate prices in this area. It is currently expected to be completed in 2021, and the station will connect the most highly populated urban areas with residential zones. The ability to commute to work or to a major university is an exciting development in the local real estate market. The general trend over the last five years has been favorable to property owners in Somerville, and the additional developments indicate that a continued rate of growth can be anticipated. The market appears favorable to buyers and investors at the current time in 2017, and selling prices are expected to rise during the next business cycle.