Somerville real estate borders Cambridge and Boston and has experienced significant appreciation since the Green Line Extension opened new stations through Union Square and Medford. The city is dense, walkable, and increasingly expensive — median condo prices in desirable neighborhoods like Davis Square, Assembly Row, and Union Square regularly range from $600,000 to $900,000. Single-family homes are scarcer and can surpass $1 million in West Somerville. Most buyers at these price points rely on conventional loans within or just above the conforming limit, though some transactions tip into jumbo territory.
Condominium market and HOA considerations
Condominiums represent the majority of transactions in Somerville. Newer buildings near Assembly Row carry HOA fees ranging from $400 to $700 per month, covering amenities, utilities, and building insurance. These fees affect lender qualification because they count as part of the monthly housing expense. Buyers should also confirm that buildings carry FHA and VA approval status before making offers. Two-family homes — the classic Somerville side-by-side or stacked unit — attract buyers who want to use rental income to offset their mortgage payment, though cap rates compress to 4–5% given high purchase prices.Property taxes in Somerville carry a residential rate around $10–$11 per $1,000 of assessed value, relatively low for an inner Boston suburb. The residential exemption for owner-occupants saves several thousand dollars annually. Closing costs run 2–3% for buyers and include deed excise, attorney fees, and title insurance. At Somerville's current price levels, jumbo loan qualification thresholds and stricter down payment requirements apply to buyers above the conforming limit. Buyers with strong credit and documented income will find compétition intense, especially in spring and fall listing seasons.
