REAL ESTATE MARKET WATCH – Updated 2021 Year-End Report

Editor’s note: This is an updated and expanded version of the report published last week

Comparison of sales from January to December

As we reflect on 2021 real estate sales data, reports show a steady pace of selling through 2021, even since the peak of pandemic buying. While the home-buying fever may have slowed in 2021, buyer demand still far exceeds residential inventory. The lack of homes for sale 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 the residential sales 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. Read the full Market Watch PDF report with market commentary, city data and regional reports. Below is a summary:

Sales have been strong in all parts of the Berkshires in 2021, but a lack of inventory has stalled sales momentum in the residential market. Despite a decrease in the number of single-family homes sold in 2021, dollar volume continued its upward trajectory with the biggest jump in the Central region, particularly Pittsfield’s $16 million increase over last year. .

Residential report

The number of single-family residential homes sold in 2021 fell 10% in Berkshire County. Dollar volume rose 4%, with $683 million from sales of 1,570 homes in Berkshire County. As sales slowed across all regions of the Berkshires, a lack of inventory in popular price ranges was the main culprit. Buyer demand remains high and well-priced homes are selling quickly. Average selling prices continue to climb, reflecting this market dynamic.

Co-ownership report

Condominium sales continue their upward trend and sales continue to grow in this sector depending on the availability of condominium units. The average condo sale price is now over $369,935 countywide, a slight pullback from last year. Condo prices are significantly higher in South Berkshire, with recent condo conversions leading the way. It is an affordable market alternative for price ranges that lack available inventory.

Multi-family report

Overall, multifamily sales have skyrocketed this year and reflect the highest sales rates in our history. Every region saw strong multifamily sales, with inventory and availability boosting the market. As the market expands, this helps fill a void left by a lack of inventory in the single-family residential market. Looking specifically at North and Central Berkshire, multi-family units are affordable and an accessible option for many.

Land report

Hold on to your hats, in North Berkshire land sales jumped 244% in 2021 compared to 2020. With only 5 land traded in 2009 in North County, the jump to 55 traded in 2021 is a huge change. With construction costs unknown going forward, it will be important to keep a close eye on building permits and opportunities to help alleviate pent-up buyer demand due to the lack of existing home inventory. At the time of this report, we had 300 parcels for sale compared to 348 housing listings (residential, condo, multi) combined.

Business report

Despite a commercial market heavily impacted by home working and business closures, commercial sales increased in all parts of the region except central Berkshire County. South County trade sales have been particularly strong over the past two years and North Berkshire dollar volume is soaring.

Market Forecast 2022

According to Danielle Hale, Chief Economist of REALTOR.com and in line with most local forecasts, nationwide listing prices, rents, and mortgage rates are all expected to rise as incomes rise, so 2022 will present both challenges and opportunities. 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.Below is our housing market outlook and forecast on the key trends that will shape the year ahead.

Realtor.com® 2022 Forecast for Key Housing Indicators