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In 2022, Berkshire actual property gross sales slowed from the height of pandemic shopping for and the 2023 market continued that lower. The greenback quantity in 2023 of all properties transacted retracted to 2019 ranges, and the variety of properties bought fell to 2016 lows. REALTORS present that whereas the market has cooled from the frenzied tempo, the dearth of stock is taking a toll on the gross sales charges. The whole variety of all actual property transactions topped 2,388 in 2021, and this yr gross sales dipped to 1,651 county-wide. With a complete market quantity of $692 million {dollars} transacted in 2023, that is down from a document breaking excessive of $892 million {dollars} bought in 2021. Many elements are impacting the market, together with low stock, increased mortgage charges, inflation, talks of nationwide recession and, total, extra cautious patrons than within the earlier yr.
It’s necessary to drill down within the numbers, as some cities have continued a gentle tempo whereas others stalled. For instance, the center Berkshire rental market remained sturdy whereas the north Berkshire multifamily market was secure.
Residential:
Total, the variety of house gross sales in 2023 decreased 18 p.c over the earlier yr, from 1,346 right down to 1,109. North County gross sales began sturdy however fell within the third quarter, with a web lower of 10 p.c. The north county residential (single household) market retracted the least of another space within the Berkshires, with central carefully following with a 17 p.c lower. South county, nevertheless, reported a 30 p.c lower within the variety of gross sales and a 21 [ercent decrease in the dollar volume of sales. It should be noted that in southern Berkshire, sales of $171 million still far exceed pre-pandemic years. Notably, average sales prices rose significantly in southern Berkshire, modestly in middle and fell slightly in north.
That said, there were a few markets that recorded increases in 2023 over the previous year. In Adams, North Adams and Williamstown, the dollar volume of sale transactions increased. The total number of residential homes sold in North Adams was the same as last year and Williamstown sales rose by 4 percent, or 2 additional homes sold when comparing 2023 to 2022. In the middle registry area, Becket, Otis, and Richmond saw rising dollar volume for residential sales. However, only Richmond increased the total number of homes sold slightly, up 4 percent, or 1 additional sale. Pittsfield, the leader of the region in the number of homes available and on the market, slowed by 20 percent. New Marlborough and Sandisfield recorded a rising market compared to 2022. Sheffield sales fell, but the dollar volume transacted rose slightly.
While the most popular price ranges vary by where a home is located, you can see that most of the inventory and sales in the north Berkshire area are well under $300,000. In central, the majority of sales are in the $250-$350,000 range, but there is a pocket of activity between $500,000-$750,000 that is also popular. The $500,000+ range is also the most active market in the southern Berkshire area, but the homes available for sale are primarily above that price point. 2023 was a tough year for home buyers to find a property within their price range and to afford and qualify for a mortgage while rates moved up and leveled during the year. The 2022 prediction of a failing market rang true. With inventory remaining a challenge, high building costs, higher interest rates and inflation, sales were struggling this year. We see now more than ever that it is critical to look at specific property types, locations and price ranges in order to understand what buyers remain in the market and where gaps can be filled with our current inventory.
Condo Report:
Condominium sales in southern Berkshire County fell considerably in 2023 compared to 2022 sales rates. Despite that retracting market, average sale prices of condos skyrocketed. North Berkshire trends were mixed, with gains of 6 percent in the dollar volume of condos sold and a decrease of 9 units sold (17percent). Price appreciation surged in northern Berkshire condo sales as well, up to $406,336 on average. The middle Berkshire market condo sales tracked very closely to 2022 sales rates, but last year was not a strong condo market in the middle area. There was a slight appreciation in dollar volume and slight gain in total dollar volume sold, but still lower than at the peak of the market.
Multifamily Report:
Multifamily sales dipped slightly with a market slowdown, but sales data were mixed. North county sales remained level from 2022, with a 9 percent increase in both the total dollar volume of 1-5 unit buildings and the average sales price. Sales fell in the middle Berkshires region to pre-pandemic sales rates. Southern Berkshire multifamily sales retracted with one less unit sold, but a large jump in both the dollar volume transacted and the median sale price. The median price in 2022 was $379,500 for a multifamily building, compared to $797,250 in 2023, a 110 percent increase.
Land Report:
After a few robust years of land sales, the market started to retract in 2022 and continued the descent in 2023. Despite land parcel sales falling from 202 in 2022 to 164 in 2023, the dollar volume and average sale price both rose over 2022. It is noted that the number of all raw land sales dipped in all parts of the county, but north and middle Berkshire recorded higher dollar volume transacted and rising average sale prices. With building costs an unknown going forward, it is important to maintain a close eye on permits and building opportunities to help alleviate pent-up buyer demand for existing homes in popular price points. It remains incredibly hard to build much-needed workforce-priced housing with current costs and codes.
Commercial Report:
Despite a commercial market heavily impacted by work-from-home and business closures, commercial sales rose in 2021, dipped in 2022 and regained momentum in 2023. Commercial sales in north and south county rose considerably, while they declined overall in central Berkshire. Please note: not all REALTOR-assisted commercial sales are included in this data, only those on the active market listed with the MLS
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