REAL ESTATE MARKET WATCH: 2021 year-end report
Reflecting on Berkshire County home sales data for 2021, we’ve continued a steady pace into 2021 after a pandemic-driven sales spike in 2020. While the homebuying fever may have slowed in 2021, buyer demand still far outweighs available inventory in most markets and price ranges. The lack of inventory increased the pressure on the market and this pressure is not expected to ease in 2022 either. The total number of all property transactions exceeded 2,375 in 2021, up from 2,337 in 2020. While residential property sales fell 10 percent, all other property types saw double-digit increases. With a total market volume of over $883 million in turnover in 2021, real estate remains an important part of the Berkshire economy.
Home sales fell to 1,570 homes sold in 2020, down 10 percent from 1,745 in 2020. Sales prices for these homes increased 4 percent overall, with sales totaling $683 million. The median selling price rose 16 percent to $434,846. In the multi-family market, sales increased from 165 vehicles sold in 2020 to 239 in 2021, an increase of 45 percent. The dollar volume of multi-family home sales exceeded $45 million, up 75 percent from just $26 million last year. Condo sales saw modest growth, up to 202 units sold in 2021 compared to 180 in 2020. Condo dollar volume also increased 9 percent to total $74 million in transactions. Land sales are booming with 302 lots sold nationwide up from 191 last year. Many cities are faced with the challenge of developing lean and efficient building permit processes to meet the expected requirements. Finally, even commercial sales in the Berkshires increased that year, according to the Multiple Listing Service. The market surpassed $36 million in 2021 with the sale of 62 commercial properties.
According to Danielle Hale, REALTOR.com’s Chief Economist, “In 2022, Americans will have a better chance of finding homes but will face a competitive seller’s market as first-time buyer demand outstrips inventory recovery.” List prices, rents and Mortgage rates are rising as incomes are rising, so 2022 will present both housing affordability challenges and opportunities. “As more sellers are expected to enter the market as buyer competition remains fierce, we expect strong growth in home sales. Affordability is increasingly becoming a challenge as interest rates and prices rise, but remote working can expand search areas and allow younger buyers to find their first property sooner than would otherwise be the case.
Stay tuned for our full 27 page housing report next week!
Berkshire Residential Market Sales by Region/City