Cambridge as a New Investment Opportunity
Internationals looking for investment opportunities around Boston might consider taking a closer look at Cambridge. With easy access to downtown Boston and as home to several of the world’s top universities, Cambridge now has one more thing going for it: housing prices. According to an article this week in The Boston Globe, prices of homes in Cambridge have fallen more than in some other nearby communities around Boston.
Cambridge’s condo prices fell almost 2.5 percent between January and May compared with sales during the same period last year, according to the Warren Group. Single-family home sales in Cambridge declined 34 percent and Cambridge condominium sales were down 36 percent. According to Cambridge realtors, it’s now not uncommon to see homes priced below the town’s assessed value — once a practically unheard of event. In comparison, other nearby neighborhoods, like Brookline for example, have actually seen house prices RISE in the last year.
Slowing sales and dropping prices suggest that Cambridge may be a town for foreign investors to watch. The presence of Harvard University and Massachusetts Institite of Technology, as well as numerous high-tech companies, suggests that in the long term, Cambridge is likely to stay attractive to both renters and home buyers. In addition, Cambridge is linked to downtown Boston by the Redline on the T and boasts a plethora of amenities, such as a huge variety of ethnic restaurants, bookstores, cafes, movie theatres, and shops. Known for its tolerance and ethnic diversity, the town is also home to numerous immigrant populations. Savvy buyers who are able to find good deals around town right now, may find that their investments pay off handsomely a few years down the road. The average one-bedroom condo in Cambridge sold for about $270,000 between February and April 2008. Two bedrooms sold for an average of $542,333. The average sales price for all houses in Cambridge between February and April 2008 was $684,183. Investors can find a property for every taste and need — from luxury high-rises overlooking the Charles River, to grand 19th century Victorians, to modest two and three-family clapboard houses that have been converted into condos.
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