A
s the first quarter of 2025 comes to a close, Berkshire County's real estate market continues to show resilience, particularly in residential sales. Despite national headwinds and limited inventory, the county saw a strong start to the year, with residential home sales up 9% from Q1 2024, totaling 217 transactions. The dollar volume surged 16% to nearly $103 million, indicating higher price points for homes sold.

    Every region of the Berkshires – north, central, and south – experienced growth in both sales and prices. North County led the charge, bouncing back after a slower couple of years with a 15% increase in sales and a 42% jump in dollar volume, surpassing pandemic-era peaks. Central Berkshire posted a 7% rise in sales and a 10% gain in volume.

    While total real estate sales dipped 2% from last year to 320 transactions, the dollar volume rose 7% to nearly $138 million, marking the strongest Q1 since 2022. The uptick in value suggests demand remains high, despite fewer properties trading hands. Inventory remains a challenge, particularly for buyers seeking homes under $500,000.

    Industry experts attribute buyer behavior to higher mortgage rates, inflation, economic uncertainty, and a national housing shortage. As a result, the market is more cautious but still active, with pricing staying strong where homes are well-positioned.

    Condominium sales rose 3% overall, but dollar volume dropped 12%. Northern Berkshire saw significant growth in both units sold and value, thanks to strong sales in Hancock, North Adams, and Williamstown. Multifamily sales declined sharply, while land sales dropped 12% but saw a 57% surge in dollar volume.

    Commercial real estate had a mixed start, with the number of sales up 13% but total dollar volume down 20%. Nationally, commercial real estate faces challenges, including high office vacancy rates. Locally, most commercial transactions remain stable, but the market remains unpredictable.

    Berkshire County's real estate market remains fundamentally healthy, driven by strong demand despite inventory and affordability constraints. As the year ahead unfolds, it's essential to have a strategy in place for buying, selling, or investing.