BERKSHIRES REAL ESTATE MARKET WATCH – 1st quarter 2022 sales comparisons | Ezine Daddy

Home sales in the first quarter of 2022 slowed from the pace of sales in 2021, but only slightly. Lack of inventory continues to hamper sales and we expect rising interest rates to continue to have an impact going forward. However, there have been no reports that buyer demand is slowing down. While condo sales rose 19% this quarter from the first quarter of 2021, land sales slowed 25%. Land transactions in the southern and northern parts of the district declined dramatically, but the central land market remained stable. Multi-family home sales declined in the North and South Districts, but continued a strong upward trend in the central market in recent years.

Sales in the North District declined overall in number of sales, but dollar volume processed increased significantly. Central Berkshire saw sales and prices increase across all property types. Southern Berkshire saw both revenue and dollar volume decline in the first quarter of this year compared to the same time last year. The total number of all real estate transactions sold in Q1 2021 was over 459, while it fell to 443 sales in total this year. Click here to view the full PDF report to print or share! Historically, this is still a robust market if you look beyond last year’s boom and instead compare previous years’ sales data.

Change in the 1stSt Qtr # of sales
in 2022 compared to 2021
residential – 2%
apartment building – 2%
condominium +19%
Commercially 0%
plots – 25%
overall market – 3%

Sales were strong in the central part of the Berkshires in 2022, but overall sales in the southern part of the Berkshires slowed. North County sales slowed in the number of units traded but rose sharply in dollar volume. The lack of homes for sale increased the pressure on the market and this pressure is not expected to ease for the remainder of 2022.

2021 2022
All sales $ Sold # Sold $ Sold # Sold
north 103 $18,677,868 90 $23,271,985
Central 180 $41,981,126 205 $57,063,602
south 176 $94,761,936 148 $77,600,150
In total 459 $155,420,930 443 $157,935,737

residential report

The number of single-family homes sold in the first quarter of 2022 fell by 5% in both the northern and southern regions, while sales in the central region rose by 2%. With 277 single-family homes sold in the first quarter of 2022, this led to an overall slight decline of 2% nationwide. It is notable that there was a large jump in dollar volume transacted in both North and Central single-family home sales. The southern market declined 3% in dollar volume, resulting in an overall market increase of 9% in dollar volume sold in the first quarter of 2022 compared to 2021.

Report on condominiums

Condo sales continue to grow depending on condo availability. Sales in North and Central Berkshire account for the country’s overall gains. South Berkshire condo sales slowed significantly in the first quarter of 2022. These market dynamics also impacted the average selling price, which rose in north and central Berkshire and fell in south Berkshire. The total number of sales, 44 compared to 37 last year in this first quarter, is still significantly higher than in years leading up to 2021. Condos continue to be an affordable market alternative when addressing a lack of available inventory in other housing options.

multifamily report

Overall, multi-family home sales in Central Berkshire have skyrocketed this year to date, reflecting the highest sales rates in our history. Last year saw historically high multi-family home sales in the northern and southern regions, but in the first quarter of 2022, these regions failed to match year-on-year levels. The Berkshire multifamily market had 1 fewer sales than the same time in 2021 but $2 million more in transaction volume. 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 inexpensive and an accessible option for many.

country report

Land sales slowed in the first quarter of 2022, but it’s important to note that this compares to 2021, a year that broke all records. Land sales have grown so much in 2021 that it’s difficult to benchmark against. Although the market appears to have cooled off compared to last year, land sales remain historically strong across all parts of the region.

trade report

Overall, the number of commercial sales in the Berkshires was the same as last year, with a declining dollar volume of homes sold. It’s a strange time for commercial real estate, as shifting needs from pandemic aftermath, along with industry and employment shifts, are impacting almost every facet of the commercial business. This shift is most evident when looking at the commercial real estate market in the southern Berkshires, which saw the largest decline in dollar volume in the county. It’s also important to note that commercial sales within the Berkshire MLS are optional and reports may not reflect all transactions

Additional market analysis

We offer here some broader perspectives on the local real estate market, as provided by Lawrence Yun, chief economist and research group leader at the NATIONAL ASSOCIATION OF REALTORS®.

inflation (Released April 12, 2022)

Inflation continues to rise with consumer prices rising 8.5% in March. Aggressive inflation will force the US Federal Reserve to raise interest rates in several rounds this year and actively pursue quantitative tightening. This is why mortgage rates have skyrocketed lately.

Higher mortgage rates will inevitably drag down home sales in the coming months and slow house price increases. My current forecast is for home sales to fall 10% this year and for home prices to rise 5% by the end of the year.

Rents rose 4.4%, despite many private sector data sources pointing to even faster gains. Hotels and motels charge 29% more. The home price isn’t part of the CPI but has hurt first-time buyers, especially as mortgage rates rise. It is clear that more apartments and single-family houses need to be built.

REALTORS® drive far more than the general population and have felt the pain at the pump. To put this into perspective, gasoline prices are up 48% year over year. Higher energy prices will also impact air fares, up 24%, and pretty much all goods transported. Higher energy prices will also generate revenue for energy-producing countries, including Russia, regardless of economic sanctions. It is a lower energy price from increasing global oil supply that will pressure Putin.

jobs (Released April 1, 2022)

The latest jobs data show an incredibly tight job market, with the unemployment rate down to 3.6%. A net gain of 431,000 new jobs was created in March, bringing the total number of jobs to 19 million since the lockdown two years ago. Another 1.5 million jobs are needed to reach the peak seen before the ugly arrival of the pandemic. There are currently two main vacancies for every unemployed person. As a result, wages are rising by a whopping 6.8%. However, workers are no better off as inflation is even higher at 7.9%.

Job gains are good, of course, but rising wages and prices raise the prospect of potential stagflation – much like in the 1970s. Bond yields hit 3-year highs on anticipation of aggressive Fed rate hikes. Mortgage interest rates will consequently also rise. For first-time homebuyers, the cost of buying the same home is up 40% this year compared to a year ago, due to the combined impact of higher home prices and much higher mortgage rates. There will be an inevitable slowdown in home sales. Keep an eye on Days-on-Market and the acceptance of multiple offers. Home sellers shouldn’t expect big easy win wins.

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