Berkshire real estate sales surged in 2020 and the same trend continues in 2021, with residential sales slightly slowing due to inventory pressures. The total number of transactions in the first three quarters of 2021 topped 1,722, up from 1,531. This is an all-time high since we have been tracking sales. With a total market volume of $629 million transacted year to date, real estate continues to be a vital part of stabilizing the Berkshire economy and serving our growing population.
The dollar volume of sales rose in every region and in every property type. The lack of inventory and slightly dimming demand stalled the frenetic pace of the previous reports. With such strong sales, it was notable to see a dip in Central commercial sales and the number of transactions of single-family homes sold in southern Berkshire. Land sales continue to skyrocket. While there are many buyers waiting in the wings for homes to come on the market in popular price ranges, inventory pressure did not allow for as much this growth as possible in the residential market.
Countywide, by the 3rd quarter, the average residential sale price in 2020 rose 24 percent compared to 2019, and 20 percent in 2021. This is the all-time highest since tracking began in 1996, 24 years ago.
Residential sales up 19 percent in dollar volume:
The number of single-family residential homes sold through the third quarter of 2021 topped 1,102, a 3 percent decrease from the same period in 2020. The dollar volume of those transactions however rose 19 percent throughout the county, with the biggest gains reported in the Central Berkshire market. While sales slowed in central Berkshire from the fast pace pre-pandemic, there continues to be a lack of inventory in the workforce housing price ranges that contribute to this slowdown. In Southern Berkshire, double-digit gains in the total dollar volume of the transactions were reported, yet lagging in the number of actual homes sold during this period. Northern Berkshire showed modest sales gains and strong dollar volume increases.
Condo sales up 29 percent, dollar volume jumps 25 percent:
Condominium sales continue an upward trend. The number of units sold reported double digit gains throughout the county and strong gains in the dollar volume of transactions rose in Central and Southern Berkshire. Sales growth in this sector is helped by reduced single-family home inventory and the availability of condo units. Average sale price of condos now tops $370,705 countywide with a $545,578 average in Southern Berkshire, $219,054 in Central Berkshire and $268,739 in Northern Berkshire. Condos represent an affordable market alternative for price ranges that lack available inventory.
Multifamily Sales booming countywide:
Overall, multifamily sales rose considerably, up 76 percent in the number of buildings sold and 119 percent jump in the dollar volume of the sales transactions. All regions reported booming sales, after a market retraction in 2020.
Land sales mark the second year of significant gains, almost triple digit countywide:
Land sales have jumped in 2020 over the lagging 2019 market, and the land purchase trend ramped up with even larger increases so far in 2021. This sector has needed a boost after many years of stagnant parcel sales with some sitting on the market for years, not months. With building costs an unknown going forward, it will be important to maintain a close eye on permits and building opportunities to help alleviate some pent-up buyer demand for existing homes.
