REAL ESTATE MARKET WATCH – Updated 2021 year-end report

Publisher’s Note: This is an updated and expanded version of the report released last week

Sales comparison January – December

As we reflect on 2021 home sales data, reports show a steady pace of sales into 2021, even after the peak of pandemic buying. While the homebuyer fever may have slowed in 2021, buyer demand still far outweighs housing stock. The lack of homes for sale added pressure on the market and this pressure is not expected to ease in 2022 either. The total number of all home transactions surpassed 2,375 in 2021, up from 2,337 in 2020. While home sales fell 10 percent, all other property types posted 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. Read the full Market Watch report in PDF format with market commentary, city data and regional reports. Below is a summary:

Sales were strong across the Berkshires in 2021, but a lack of inventory held back sales momentum in the housing market. Despite a decline in the number of single-family homes sold in 2021, dollar volume continued its upward trend, with the largest jump in the central region, most notably Pittsfield’s $16 million year-over-year gain.

	2020		2021
All sales	# Sold	$ Sold	#Sold	$ Sold
north	423	$97,522,795	459	$114,696,247
Central	944	$227,886,028	995	$264,560,305
south	970	$468,944,213	921	$504,176,225
total	2337	$794,353,035	2375	$883,432,778

residential report

The number of single-family homes sold fell 10 percent in Berkshire County in 2021. Dollar volume was up 4 percent, with $683 million in 1,570 home sales in Berkshire County. While sales slowed across all Berkshire regions, a lack of inventory in popular price points was the predominant cause. Buyer demand remains high and reasonably priced homes are selling quickly. Average selling prices continue to rise, reflecting this market dynamic.

Report on condominiums

Condo sales continue the upward trend and sales in this sector continue to grow depending on condo availability. The average selling price of condos nationwide is now over $369,935, down slightly from last year. Condo prices are significantly higher in South Berkshire, with recent condo conversions leading the way. This is an affordable market alternative for price ranges where there is no available inventory.

multifamily report

Overall, multi-family home sales have skyrocketed this year, reflecting the highest sales rates in our history. Each region reported strong multifamily sales, with inventory and availability driving the market. As the market expands, it helps fill a gap created by a lack of inventory in the single-family home market. Looking specifically at north and central Berkshire, multi-family housing is affordable and an accessible option for many.

country report

Hold on to your hat, north Berkshire land sales rose a staggering 244 percent in 2021 compared to 2020. With just 5 lots traded in North County in 2009, jumping to 55 lots traded in 2021 is a huge change. With construction costs unknown in the future, it will be important to keep a close eye on permits and building opportunities to alleviate some pent-up demand among buyers due to lack of inventory of existing homes. At the time of this writing, we had 300 lots for sale compared to 348 listings of apartments (residential, condominium, multifamily) combined.

trade report

Despite a commercial market hit hard by home working and store closures, commercial sales rose in all parts of the region except central Berkshire County. South County commercial sales have been particularly robust over the past two years, and dollar volume is rising sharply in northern Berkshire.

Market Forecast 2022

According to Danielle Hale, Chief Economist of REALTOR.com and in line with most local forecasts, nationwide list prices, rents and mortgage rates are expected to rise as incomes rise, 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. Below are our forecasts and housing market forecasts on key trends that will shape the year ahead.”

Realtor.com® 2022 forecast for key housing indicators

apartment sign	2022 Realtor.com® Forecast	2021 Realtor.com® data
Existing Average Selling Price Increase of Home	Plus 2.9 percent	12 percent up
Sale of existing homes	Plus 6.6 percent	6 million dollars
Existing Inventory	Plus 0.3 percent	Down 18 percent
Start of construction for single-family houses	5 percent up	15 percent up
home ownership rate	65.8 percent	65.5 percent

source https://www.bisayanews.com/2022/01/21/real-estate-market-watch-updated-2021-year-end-report/