With the Davis Square neighborhood anchoring a strong push this summer the Somerville multi family market is setting records for both prices and speed in which these investment properties are selling. Thus far in 2013 we’ve seen 105 multi family homes sold in Somerville with 8 of these sales going for over $1,000,000. 2012 saw 110 total sales over the same period with only 2 sales topping the million dollar mark, an indicator of the market wide increase in prices. Average sale prices have risen precipitously over the past year, increasing from $553,179 in 2012 to $694,952 in 2013, an increase of over $140,000 in just a year’s time.
Of all the metrics we typically look at to breakdown a neighborhood’s market activity none is a better indicator of general interest than list-to-sale ratio. Essentially this metric tells us the overall percentage of the list price a home receives upon a sale. In extremely hot markets we will typically see this average sit between 99-100%. In rare cases we see this average inch over 100%, however, anything appreciably above this mark is extremely hard to achieve over any worthwhile sample in any neighborhood. Thus far in 2013 Somerville multi families are averaging a mind blowing 105.2% of list price, this is up from 97.4% in 2012. In layman’s terms a multi family listed for $500,000 will end up selling for $526,000 in today’s market.
Somerville multi families boasted a median days on market of 42.5 from January to September last year and upon sale fetched $199 per square foot. Thus far in 2013 these numbers have been blown away with median days on market down to just 13 days and average price per square foot jumping 22% to $244. When you take a step back it’s all pretty astounding. In a year’s time multi family homes in Somerville have begun to sell 300% faster and have increased in price by about 25%.