As 2025 comes to a close, the real estate market in Greater Boston remains dynamic, offering opportunities for both buyers and sellers. Here's a look at how five key markets—Arlington, South Boston, Cambridge, Medford, and Somerville—have performed this December.
Arlington continues to charm with its quintessential New England vibe, excellent schools, and proximity to Boston. December saw a subtle uptick in demand for single-family homes, with buyers drawn to the town’s tree-lined streets and access to the Minuteman Bikeway. Median home prices held steady compared to last month, hovering around $1.1 million. Inventory remains tight, leading to competitive offers on well-maintained properties. For sellers, this is still a favorable market, but buyers are increasingly discerning, prioritizing move-in-ready homes.
South Boston, or "Southie," remains a hotspot for urban dwellers seeking a mix of modern luxury and historical charm. This December, condo sales dominated the market, with several newly constructed units finding buyers attracted to skyline views, high-end finishes, and access to the Seaport District. The median condo price climbed to $950,000, reflecting the area's ongoing desirability. The rental market also saw a surge, driven by professionals looking to relocate closer to Boston’s tech and biotech hubs.
Cambridge continues to be one of the most sought-after markets in Greater Boston, thanks to its proximity to world-renowned universities and a thriving tech ecosystem. December showed a balanced market, with a slight increase in inventory compared to earlier in the year. Single-family homes and luxury condos in neighborhoods like Kendall Square and Harvard Square were particularly popular, with median prices for single-family homes reaching $1.8 million. Buyers are showing a growing preference for energy-efficient and smart home features, aligning with Cambridge’s innovative spirit.
Medford has quietly solidified its place as a top choice for buyers seeking more space without sacrificing convenience. December saw steady activity in both the single-family and condo markets, with median prices for single-family homes landing around $890,000. The Green Line Extension has continued to drive interest, especially in neighborhoods like Ball Square, where accessibility to Boston has never been easier. Medford’s mix of affordability and location makes it a standout for first-time buyers and young families.
Somerville remains a vibrant and eclectic market, appealing to everyone from artists to young professionals. This December, the city saw consistent demand for multi-family properties, with investors eyeing opportunities in Davis Square and Union Square. The median price for single-family homes hovered around $1.2 million, while condos averaged $850,000. The continued development around Union Square, including the Green Line Extension and commercial projects, is positioning Somerville as a long-term investment hub.
As we move into 2026, these markets are expected to remain resilient despite evolving economic conditions. Rising interest rates have tempered buyer activity slightly, but the region’s strong job market and desirable lifestyle continue to fuel demand. Sellers in these competitive areas should focus on presenting their homes in the best possible light, while buyers may find opportunities in neighborhoods with growing inventory.
Whether you're looking to buy, sell, or simply stay informed, understanding the nuances of these local markets is key to making smart real estate decisions.
Compass
1100 Massachusetts Ave
Cambridge, MA 02138
Dana Schaefer
