As we reflect on Berkshire County 2021 real estate sales data, after a pandemic-fueled sales surge in 2020, we continued a steady pace into 2021. While the fever for home purchases may have slowed in 2021, buyer demand still far outweighs the inventory available in most markets and price ranges. The lack of inventory added pressure to the market, and this pressure is not expected to let up in 2022. The total number of all real estate transactions topped 2,375 in 2021, up from 2,337 in 2020. While residential sales fell 10 percent, all other property types reported double digit gains. With a total market volume now exceeding $883 million dollars transacted in 2021, real estate remains a vital part of the Berkshire economy.
Residential sales fell to 1,570 homes sold, down from 1,745 in 2020, a 10 percent decrease. The selling prices of those homes rose 4 percent overall, with $683 million dollars transacted. The average selling price rose 16 percent to $434,846. In the multifamily market, sales jumped from 165 sold in 2020 to 239 in 2021, a 45 percent increase. The dollar volume of multifamily unit sales topped $45 million dollars, up 75 percent from only $26 million in the previous year. Condo sales reported modest growth, up to 202 units sold during 2021 compared to 180 in 2020. The dollar volume of condos also rose, up 9 percent with a total of $74 million in transactions. Land sales are booming, with 302 parcels sold, up from 191 countywide in the previous year. Many towns will be challenged to develop streamlined and efficient building permit processes to meet the expected demands. Finally, even commercial sales in the Berkshires rose this year, as reported to the Multiple Listing Service. The market exceeded $36 million dollars in the sale of 62 commercial properties in 2021.
According to the REALTOR.com chief economist Danielle Hale, “Americans will have a better chance to find a home in 2022 but will face a competitive seller’s market as first-time buyer demand outmatches the inventory recovery.” Listing prices, rents and mortgage rates are all expected to climb while incomes rise, so 2022 will present both housing affordability challenges and opportunities. “With more sellers expected to enter the market as buyer competition remains fierce, we anticipate strong home sales growth. Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise.
Stay tuned for our full 27-page housing report next week!
Berkshire Residential Market Sales by Region/Town