As we reflect on Berkshire County’s 2021 property sales data, after a pandemic fueled surge in sales in 2020, we have continued a strong pace into 2021. Although home buying fever may have -be slowed in 2021, buyer demand still far exceeds available inventory in most markets and price ranges. The lack of inventory has added pressure to the market, and this pressure is not expected to let up in 2022. The total number of all real estate transactions exceeded 2,375 in 2021, compared to 2,337 in 2020. While sales residential fell 10%, all other property types posted double-digit gains. With total market volume now exceeding $883 million traded in 2021, real estate remains a vital part of Berkshire’s economy.

Residential sales fell to 1,570 homes sold from 1,745 in 2020, a 10% decline. Sales prices for these homes rose 4% overall, with $683 million traded. The average selling price rose 16% to $434,846. In the multifamily market, sales increased from 165 sold in 2020 to 239 in 2021, an increase of 45%. Dollar volume of multi-family unit sales topped $45 million, up 75% from just $26 million the year before. Condo sales saw modest growth, up to 202 units sold in 2021 from 180 in 2020. Condo dollar volume also increased, up 9% with a total of $74 million in transactions. Land sales are booming, with 302 plots sold, compared to 191 countywide the previous year. Many cities will be challenged to develop streamlined and efficient building permit processes to meet expected demands. Finally, even commercial sales in the Berkshires have increased this year, as reported by the Multiple Listing Service. The market surpassed $36 million in the sale of 62 commercial properties in 2021.

According to REALTOR.com Danielle Hale, Chief Economist, “Americans will have a better chance of finding a home in 2022, but will face a competitive seller’s market as demand from first-time buyers outpaces inventory recovery.” Listing prices, rents and mortgage rates are all expected to climb as incomes rise, so 2022 will present both challenges and opportunities for housing affordability. “With more sellers expected to enter the market as competition among buyers remains fierce, we expect strong growth in home sales. Affordability will increasingly be a challenge as interest rates and Prices are rising, but working remotely can broaden search areas and allow young buyers to find their first home sooner than they otherwise would have.

Stay tuned for our full 27-page housing report next week!

Berkshire Residential Market Sales by Region/City