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August Market Watch Update

Residential single-family home sales continued to surge in August 2020. Year-to-date, we are reflecting overall sales increases of almost 7% countywide of 914 homes sold through the end of August, despite several months of very limited activity in March April and May. Sales year-to-date topped $302 million dollars, up 30% from last year when we transacted $233 million dollars in home sales. In August, we see the level of home inventory available for sale continues to fall countywide, with our active listing count dropping over 45% from the same time last year – down to a staggering 495 homes for sale at the end of the month compared to 904 last year. The median listing prices countywide continue to rise due to this increase in demand and lack of supply.  Average listing prices were at $465,000 at the end of August, compared to $280,000 in median sale price in August 2019.  Full Berkshire Residential Report (with town summaries)

Northern Berkshire residential sales are robust, up 11% from last year and 16% year to date. From January through August, northern Berkshire transacted $49 million dollars in residential sales, up 33% from $37 million dollars in sales last year. Median sales prices continue to rise, up 11% year to date with a 41% jump in August. The median sale price in August 2020 was $245,500 , compared to $174,000 in 2019. Going into September, northern Berkshire pending sales are up 60% compared to the same time last year. There are 85 homes under agreement compared to 53 in August 2019. Pending sales volume now tops $24 million dollars compared to $14 million dollars last year. Inventory continues to be a struggle countywide and northern Berkshire has now fallen to only 2.4 months of inventory. North Berkshire Residential Report

Central Berkshire residential sales are also booming, still slightly down year-to-date when compared to 2019. While the number of single-family homes sold dropped 5% in central Berkshire, note an increase of 10% in the closed sale volume from $98 million dollars, jumping to $108 million dollars in the region. This has driven the median sale price up to $211,500. As the statistics indicate, the slowing sales are due to a lack of residential inventory. Central Berkshire has only two months of inventory for sale, a 58% decrease in supply when compared to last year when we also had inventory tight as well. With only 153 active listings on the market there are not enough homes to satisfy buyer demand. Going into September, pending sales are up by 6% with 152 homes currently under contract in the central Berkshire region. There is $46 million dollars in anticipated pending, an increase of 28% from August of 2019 when pending sales volume was $3 million dollars. Central Berkshire Residential Report

South Berkshire sales rose 34% year-to-date compared to sales in 2019, with 347 transactions compared to 259 homes sold in 2019 from January to August.. The dollar volume also surged 59% with $164 million dollars transacted in the residential home market so far this year. August sales volume topped $40 million dollars compared to only $17 million dollars last year. This has pushed the median sale prices up to $420,000 in the southern Berkshire region.  Inventory continues to be an issue and now has flipped to a sellers’ market after exhausting much of the supply that was on hand. There is only 3.1 months of inventory in a residential home market compared to 11 months last year. With two 169 homes currently on the market for sale we see the volume is considerably lower. Going into September, pending sales are up 109% with 163 residential homes currently under contract representing over $87,000,000 in anticipated sales. South Berkshire Residential Report

We are experiencing a market that has several influencing factors. There is strong buyer demand from both within and outside of the County, mortgage rates continue to be at historically low levels, home ownership is highly sought after, both due to the pandemic and because working from home became a new option for many people. While we are glad to see it a robust housing market and the stability for the local economy that this can afford, we are cautious that without residential properties to satisfy the demand these trends could slow.

Condo Sales: As of the end of August, Berkshire County condo sales were 9% slower year-to-date than sales in 2019, with 72 units transacted compared to 79 in units. The average pricing of condos rose considerably however, with $30 million transacted in sales compared to $24 million last year. This jump represents a 28% increase. Due to this increase, we see the median sale price of condos also rise to $340,000 in August. The inventory of condos on the market is down 38% from the same time in 2019, with only 47 units currently listed for sale. This represents only 3.1 months of inventory in the condo market. Our pending sales however are strong going into September, with a 100% increase to 38 units currently under agreement in the Berkshire County MLS, up from 21 at the end August of 2019. Full Berkshire Condo Report

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