Continuing the theme from my previous post, I wanted to take a look at trends in the Cambridge condo market. Here are two graphs that paint a picture of what's been going on recently.
Notice the trend in the first graph. The number of sold properties and pending or "under contract" properties is growing each month. The market is definitely active as the volume of sales is increasing!
Now take a look at the second graph. It shows how the stock of available inventory is decreasing. Ah hah! Does this mean more and more people are buying at a time when inventory isn't being replenished? Could we be facing an actual shortage of available homes for sale at a time when affordability has improved and the cost of mortgage money is still very attractive? If this trend continues, could we actually face the possibility of price increases in the near future because of a alack of inventory?
My advice is to buy now while the market is on your side. Don't wait for a future market that could be characterized by a shortage of inventory, higher prices and the possibility of higher interest rates! Your best opportunity to take advantage of the American Dream is today, not tomorrow!
