T
he Berkshire County real estate market experienced a challenging year, particularly for home buyers and investors, as they struggled to find properties within their budget and secure mortgages amidst rising interest rates. By the third quarter of 2024, sales continued to decline from the previous highs of 2021-2022.
Middle Berkshire saw a slight rebound, but Northern Berkshire's declining sales market marked its third consecutive year of decline. The lack of home inventory remains a significant challenge, compounded by high building costs, interest rates, and inflation pressures.
Key statistics for the third quarter:
* Residential sales: Down 5% with 1,178 sales YTD 2024 compared to 1,234 in 2023.
* Dollar volume: Down 3% to $495 million compared to $509 million last year.
* Pending transactions: Up in September with 116 pending compared to 110, with the hottest market being the $250,000-$400,000 price range.
* Inventory: Up, with an absorption rate of 3.44 months compared to 2.74 months.
* Prices: Up, with an average sale price of residential homes at $475,598, a 3% increase overall.
Residential sales declined in all regions, except for Middle Berkshire, which remained steady. The number of south county homes for sale increased by 2%, while North Berkshire saw a 19% decrease in sales. Condo sales fell 7%, but dollar volume increased in Middle Berkshire. Multifamily sales rose 8%, with dollar volume up 10%. Land sales declined 12%, and dollar volume dropped 20%. Commercial sales remained the same, but dollar volume decreased by 5%.
The market continues to face challenges, including a lack of inventory, high building costs, and interest rates. The need for legislative action to incentivize smart growth and development while maintaining the Berkshires' character is pressing.
