1 week Ago By Sandy Carroll
Compared to the sales rate of last year, the 217 residential sales in the first quarter of 2025 reflected an increase of 16 percent in dollar volume to almost $103 million dollars and rose 9 percent in the number of home sales. The residential sales pace in the first quarter of 2025 rose in all parts of the Berkshires, with increases in the number of sales, the dollar volume of those transactions, and the average selling price of single-family homes.In the first quarter of 2025, the number of all real estate sales retracted 2 percent to 320 units sold but rose 7 percent in the dollar volume transacted.
These transactions accounted for nearly $138 million of residential, condo, multifamily, mobile home, land and commercial deed transfers. This is a high since the peak in 2022.Notably, the sales of single-family residential homes, condos and commercial properties improved in the first quarter of 2025 when compared to last year, but multifamily, mobile home, and land sales fell.
Residential sales improved in all regions of the county. The number of real estate sales during the 1st quarter is below pre-pandemic rates comparatively, but dollar volume is tracking higher. A lack of available inventory remains an issue in the residential home market.
Berkshire County REALTORS report that while the market has slowed from the pandemic frenzy, inventory shortages continue to challenge buyers. There remain more buyers than properties available in hot price points, yet buyers remain selective and hesitant to purchase properties perceived as overpriced. Factors influencing the market include limited inventory, higher mortgage rates, inflation, nationwide debt, and more cautious buyer behavior.
Residential Sales Up 9 percent with dollar volume up 16 percentThe number of single-family home sales in the first quarter of 2025 rose by 9 percent over the previous year, from 200 to 217 transactions. North County sales rebounded after a challenging first quarter in 2023 and 2024, with an increase of 15 percent in number of sales and a whopping 42 percent in the dollar volume. This dollar volume in northern Berkshire even exceeds the pandemic high sales rates.
The central region had strong sales, up 7 percent compared to the first quarter last year and a 10 percent increase in the dollar volume of those sales. In southern Berkshire, sales rose at a modest 3 percent pace, with an 8 percent increase in dollar volume.Condo sales rose 3 percent, but dollar volume fell 12 percent.
Condominium sales in Northern Berkshire rose greatly over the 1st quarter of 2024, with an increase of 25 percent of units sold and a 93 percent increase in the dollar volume transacted. Sales were in Hancock, North Adams and Williamstown. Central Berkshire condo sales retracted slightly when compared to a banner sales pace in the 1st quarter of 2024.
Southern Berkshire’s condo market remained stable with no difference in the number of units and similar dollar volume of transactions. When looking at the full Berkshire County picture, condominium sales rose 3 percent yet fell 12 percent in volume.Multifamily sales fell 36 percent in units sold; -21 percent in dollar volumeIn the first quarter of 2024, multifamily sales were booming in all parts of the county.
This year, however, sales retracted in both Northern and Central Berkshire, with double-digit decreases in the number of units sold and the dollar volume of transactions. In Southern Berkshire, the market was much different, with the same sales pace as the first quarter of 2024 and a considerable jump in the dollar volume transacted, up 42 percent. Despite the upswing in the multifamily market of between 1-5 units in 2024, the average sale price did not rise at all; but this year we see gains of the average selling price of multi-family homes increase in all regions.
Land sales down 12 percent, dollar volume up 57 percentThe land sales in the first quarter of each year are hard to predict, with warmer months more conducive to testing and site work needed before purchase and with soft ground. We do note that countywide sales decreased by 12 percent, yet the dollar volume increased by 57 percent to exceed over $3.5 million transacted this year alone.
Land sales in the most recent years remain consistent, but during the pandemic rose considerably. 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 the needed workforce priced housing with current costs and codes.
Commercial Sales up 13 percent, dollar volume down 20 percentCommercial sales continue to fluctuate. The first quarter of 2025 was stable compared to last year with a 13 percent gain in the number of properties transferred, but still lower than previous commercial markets. In 2025, the overall national commercial vacancy rate is expected to peak at 19 percent.
Office real estate has the highest vacancy rate at 21 percent. Please note that not all REALTOR-assisted commercial sales are included in this data; only those on the open market are included in this data..
