Analyzing Home Prices 2024, Trends & Predictions 2025
The factors that shape the real estate market in 2024
The real estate market in 2024 was significantly impacted by fluctuating and elevated interest rates, and a high level of inflation which the Fed has been trying to curb throughout the year. At the beginning of the year, predictions suggested a gradual decline in mortgage rates, but instead, rates spiked during the spring home-buying season, reaching new highs. This unexpected rise in interest rates dampened buyer interest, slowed national home price appreciation, and created uncertainty in the market.
Despite a temporary rate cut in September, mortgage rate volatility persisted, making it challenging for both buyers and sellers to plan with confidence.
The US presidential election brought the market to a halt in October until election day, after which sales activities quickly resumed. We finished the year 2024 with a 30-year mortgage rate nearing 7%.
The Cambridge Real Estate Market
We sold 643 properties in 2024 which is remarkably similar to 2023 in number of units sold, and 74% were condominiums (a total of 476 condos). However, it is 30% less than what we used to sell 10 years ago in 2014 (856 Cambridge sales in 2014). With interest rates being high, and higher than 5-10 years ago, homeowners tend to stay put in their home and proceed with renovations vs. buying a new home.
The Cambridge average sale price is now for condominiums $1,108,000, for single family homes $2,550,000 and for multi-family buildings $2,233,000. The media prices are $928,000 for condominiums, $2,175,000 for single family homes and $1,755,000 for buildings. Those numbers are very similar to the prices of 2023, so the market has only slightly appreciated this year.
The highest sale in Cambridge in 2024 was on one of the finest and historic streets in Cambridge at 165 Brattle Street which closed at $10,000,000 (excluding a multi-unit building sale on Wendell Street from the Lesley College portfolio). Secluded and private, this stately 1873 Victorian was set back behind lovely flower-bordered gardens, was in good condition yet awaiting owner’s updating.
The highest sale for a Cambridge condominium was at 975 Memorial Drive, or the premium Residences at Charles square, offering 3 bedrooms, 2 bathrooms and floor-to-ceiling Charles River views. It closed for $3,400,000 with an exceptional price/ sf at $2,118/sf.
The Somerville Real Estate Market
The market has been tight in Somerville as well with the number of sales nearing the level of 2023, accounting for 600 properties this year 2024. Average Sale prices have moved up 7% for condominiums, 10% for single family homes and 14% for buildings.
The median price for a condominium is now at $960,000, $1,363,000 for single-family homes and $1,500,000 for a building, and those median prices are close to the average sale prices in the town of Somerville. It shows that this is a very homogeneous marketplace.
The highest sale in Somerville (excluding large scale development and buildings) was 264 Willow Avenue, a modern exquisitely renovated 5 bed 4.5 bath 4,000 sf Victorian house minutes from Davis Square. It sold for $2,800,000 ($698/sf). Photo below.
The Arlington Real Estate Market
There are not many changes to signal in Arlington in 2024. We sold 441 properties in 2024, similar to the year before, and home prices have slightly appreciated but not significantly.
The median sale price is now at $772,000 for condominiums, with the highest sale price at $1,800,000 for a brand-new 3315 sf townhome at 129 Appleton Road. The median price for a single-family home remains around $1,150,000.
The highest sale in Arlington in 2024 was at 37 Beverly Road, a stunning waterfront 3-bedroom 2.5 bathroom home with panoramic views, and located on the Lower Mystic Lake. It sold for $3,000,000 at a fetching $907/sf.
The Belmont Real Estate Market
While Belmont is traditionally a small marketplace, the number of sales is extremely down 46% this year from 431 sales in 2023 to 231 properties sold in 2024.
The median sale price remains unchanged with single-family homes yielding in average $1,727,000, up 4.5% from 2023. The single-family home market segment makes up for 50% of the sales in Belmont, MA.
Due to the shortage of the inventory, condominiums prices are up in Belmont with a median sale price now at $955,000 up 22% from the year before, and the average price up 20% to now $1,000,000.
The highest property sold in Belmont in 2024 is 25 Lantern Road, a magnificent new construction modern farmhouse-style home with an expansive front porch situated on a half-acre lot in Belmont Hill. This 5-bedroom 5-bathroom 6,200 sf property sold for $3,575,000 ($576/sf).
68 Longmeadow Road was another striking sale of a newly renovated 6,028 sf property closing at $3,550,000 ($588/sf).
What to expect for the near future 2025?
Here are key national data that gives an insight to the immediate future:
- The median homebuyer age has moved from 49 to 56 years old in 2024
- 73% of all buyers did not have a child under 18 years old – which is about 8 out of 10 buyers.
- 24% were first-time buyers down from 32% in 2023
- 26% of all transactions were cash-buy
- 17%of buyers buy a multi-generational property
- The average length of ownership changed to 10 years while it was 5-6 years in 2010
Downsizers were a powerful market segment in 2024, basically shaping the market whether buying a new home as empty nesters smaller or closer to the city, a vacation or 2nd home, or investment property. The first-time buyer market was impacted by high interest rates and inflation.
How to sell and buy in such a market context? Trends to Watch.
Affordability is really the issue today, and properties tend to stay on the market 20% longer than a year ago. The fastest path to changing affordability is a change in interest rates. The other issue is the shortage of inventory as sellers have hold off listing their properties since the pandemic and due to high interest rates for the past 2 years. There are some signals that seller volume is starting to go back to normal levels.
The market is rapidly changing, and only a local real estate market expert who has the pulse on the peculiarities of that market and proven results can be an efficient strategist and lead your sales to success. Ask top-producing Cambridge agent, Sandrine Deschaux + Co, to be your partner.
Not only pricing properly is key to your success, but a curated staging, creative marketing and networking are the foundation to superior services, greatest and fastest results.
Staged homes sell for $40,000 over asking on average according to RESA and spend 73% less time on the market. The average return on investment ROI for staging is 586%. Ask Sandrine how she proceeds with home staging and selling.
Cambridge-based and RE/MAX-affiliated Real Estate producer, Sandrine Deschaux + co, brokered once more $40M in homes in 2024. Sandrine Deschaux is a trusted advisor assisting you make informed strategic decisions as you broker your most valuable financial asset, real estate, whether you buy a new home or sell your house for many years. Connect with Sandrine to schedule a time to speak.
