Upon receiving the October numbers for Cambridge, the first thing that caught my eye was the median transaction price for single-family homes. Last October, it was $3.19 million, but this October, it has dropped to $2.1 million, a decrease of 34.2%.

However, it would be misleading to conclude that Cambridge home prices have fallen by a third based solely on this number. There were only 7 single-family home transactions this month, compared to 18 in the same month last year.

With such a small sample size, the median can fluctuate significantly depending on which homes were sold. The Massachusetts Association of Realtors (MAR) report also noted that a small sample size can make monthly figures appear extreme.

Therefore, it makes sense to look at single-family homes cumulatively from the beginning of the year through October. The cumulative median price is $2.46 million, which is 2.1% lower than last year's $2.512 million during the same period.

The cumulative number of transactions has actually increased from 91 to 100, a rise of 9.9%. The number of pending contracts also rose to 14 in October, compared to 9 last year.

In summary, prices are stabilizing slightly, while transactions have picked up a bit. It seems more like the market has cooled down from the excessively hot years rather than a significant downturn.

Interestingly, the single-family homes sold in October fetched 109.4% of their original listing prices. At the same time, the cumulative days on the market until sale was 133 days, significantly longer than last year's 38 days.

This suggests that even though it took longer, good homes ultimately sold for a premium, but with only 7 transactions, it's hard to draw definitive trends. I tend to look at individual transaction cases more closely during such months.

The focus of transactions in Cambridge is actually on condos. There were 50 condo transactions in October, up 19.0% from 42 last year.

The median transaction price for condos was $930,500, which is a 2.0% increase from $912,500 in October last year. Cumulatively from the beginning of the year, the median price is $951,250, which is 2.9% lower than last year.

There is a bit more room for negotiation with condos. The ratio of actual sale prices to listing prices is 98.3%, down from 99.4% last year, and it took 53 days to sell, longer than last year's 36 days.

Even within the same timeframe, conditions can vary significantly depending on the area. New elevator condos near Harvard Square or Kendall differ from older two-family renovated condos in Mid-Cambridge or Cambridgeport, starting with the buyer demographics.

Therefore, it's much more accurate to select a few recent transactions similar to the building I'm looking at, rather than relying on neighborhood averages. Factors like parking availability or differences in maintenance fees can greatly affect perceived prices.

Let's also look at the inventory situation. As of the end of October, there were 31 single-family homes for sale, down from 38 last year, and the months of inventory decreased from 4.3 months to 3.0 months.

Condo inventory was slightly lower at 164 units compared to 171 last year. The months of inventory decreased from 4.2 months to 3.7 months.

New listings included 17 single-family homes and 55 condos, both down from last year. The numbers reflect a trend where sellers are not rushing to sell this fall.

Interest rates cannot be overlooked either. According to Freddie Mac's weekly survey, the average for a 30-year fixed mortgage was 7.18% as of November 5, marking a three-week decline.

However, this is still high compared to 6.22% a year ago. In a market like Cambridge, where the median price hovers around $1 million, this 1% point difference can feel significant in monthly payments.

Shifting to rents, the atmosphere is much calmer. According to Spot Easy, the median rent for a one-bedroom in October was $2,800, a modest increase of 0.7% from $2,780 last October.

According to RentHop, the median rent for studios was $2,695, for one-bedrooms $2,925, and for two-bedrooms $3,500. Both sites indicate that median rents have remained relatively stable over the past year.

The differences in numbers between the two sites arise from the range and methods of properties they account for. It's important to keep in mind that these are listing figures and may differ from actual contract amounts.

Cambridge rents tend to be busiest in the summer leading up to the September semester start, and they quiet down after October. For those currently searching for a home, options may be limited, but there is at least more room for negotiation compared to summer.

In summary, condo transactions have increased while prices remain stable, single-family homes have seen a slight cumulative price drop but an increase in transactions.

Rents have been nearly stagnant for a year, and interest rates are gradually decreasing from high levels. I believe the market does not present a strong reason to rush or to wait idly.

If I were looking at condos right now, I would start by examining properties that have been on the market for over 50 days. Given that they are trading at around 98% of listing prices, it would be reasonable to negotiate on price and request repair credits.

For single-family homes, the situation is different with only about 30 properties available. I would recommend getting pre-approved rather than waiting for interest rates to drop if a desirable home comes up.

The sales figures discussed are based on the regional market report released by MAR in early November for October 2026. A similar report is published every month, so I will revisit the year-end trends next month.