Market Watch for 1st Quarter of 2026 | Residential Sales Fell Slightly, Dollar Volume Rose

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The 2026 1st Quarter Market Watch is hot off the presses! As we wrap the first quarter of the year, we face concerns about inflation, global conflict, the impact of tariffs and ongoing economic uncertainty. If you’ve been trying to make sense of where the real estate market is heading, you’re not alone. Unfortunately, there is no crystal ball and we’re faced with many emerging factors that may weigh heavily in the months to come.

The good news is that most analysts are not predicting a wild swing in the real estate market at this time, but they’re also not holding steady to bold predictions they made at the end of last year for a year of growth.  Everyone appears cautious because of the level of uncertainty.  By staying tuned to the experts and local trends, we can learn where we’ve been and what to watch for ahead.  A few key factors:

Mortgage rates, which are still projected to have modest and not massive fluctuations, rapid inflation, falling consumer confidence and/or concerns about household stability remain a big driver in the housing market. Yet, even in a shifting market, life keeps moving with new jobs, growing families, downsizing – and those moments still drive real estate decisions. However, if there are consumer concerns about a rising cost of living or fear of an uncertain future, it may impact less urgent sales.  Please check out the full market watch for a more in-depth look at what is ahead, but first, a look back at the first quarter sales in Berkshire County.

Everything is Local

All real estate is local, and the first quarter of 2026 reinforces the importance of looking beyond regional trends to town-level data. Some towns saw strong gains while others struggled, highlighting how pockets of activity can shift quickly from one community to another. Be sure to review the town-by-town data for a fuller picture.  Overall, 1st  quarter residential sales fell by 6% over last year in the number of single-family homes sold countywide.  Dollar volume transacted rose by 4%.  So down, but not horribly slow.  The higher end market stayed busy overall – but again, it’s very town and property type specific this quarter.

While overall North County sales declined by double digits, Adams was the standout for a huge surge in sales. Florida, Lanesborough, and North Adams sales showed improvement. However, Clarksburg and Williamstown had double digit declines.

Central Berkshire softened slightly, and Tyringham’s one large sale gave a hefty boost to the statistics but sales were level. Hinsdale and Pittsfield markets were stable. However, Becket, Dalton, Lee Otis, and Stockbridge had double digit decreases.  Lenox and Richmond sales substantially increased from the previous year of residential sales.

South County led the market with increases in both sales and dollar volume: Monterey, New Marlborough, and Sheffield sales were very strong.  Egremont, Sandisfield and Sheffield had level sales rates but falling average sale prices, while Great Barrington sales struggled.

Very niche, very specific to town activity rather than a region, and a yin and yang of strength and weakness in the various types of real estate sales for each as well.

Residential Report

Residential sales saw a modest pullback in Q1 2026, with total transactions down 6% year over year. Activity declined in both North and Central Berkshire, while South County posted a slight increase in sales along with a significant rise in dollar volume. Overall sales volume increased 4% countywide, driven largely by higher-priced transactions in the southern region. Average sale prices continued to climb, reaching $526,372, reflecting ongoing demand at higher price points. As with other segments, the residential market remains steady but segmented, with performance varying by region and price tier.

Condo Report

Condominium sales saw a modest decline to start 2026, with total transactions down 6% and overall dollar volume falling 21% year over year. North and Central Berkshire both experienced decreases in activity and pricing, contributing to the softer overall performance. South County, while low in volume, saw a slight increase in sales and a notable rise in average price, reflecting a few higher-end transactions. Overall, average sale prices declined across most regions, bringing the countywide average down to $411,315. As with other property types, the condo market remains inconsistent and highly localized, with performance varying by region and price point.

Multifamily Report

Multifamily sales have been mixed. After a 9% decline in 2025—driven largely by decreases in Northern and Central Berkshire—Q1 2026 showed some stability overall, with just five fewer sales year over year. North County saw a robust start, while Central Berkshire experienced a pullback, including a $1.7 million drop in transaction volume. South County remains inconsistent, with one of the lower-performing quarters in recent years, declining from $11 million last year to $8.5 million this year. We’re hopeful to see this segment stabilize as the year progresses.

Land Report
Land sales have had a challenging run over the past several years. Prior to COVID, activity peaked in the early 2000s, with 59 parcel sales in Q1 2003 alone. While Q1 2026 showed a 23% increase in transactions, that still equates to just 27 sales, with an average price of $132,456 and total volume of $3.6 million—well below the $10.6 million peak seen in Q1 2021. These numbers continue to reflect the ongoing challenges around growth and development in the Berkshires.

Commercial Report

Overall, the 2025 commercial market in Berkshire County rose 5% with 46 sales, compared to 44 in 2024. The dollar volume of those sales fell 10%, down to $26 million from 2024 sales valued at $29 million. As we enter the first quarter of 2026, the central Berkshire commercial sale market remains strong, and serves as the driving force of most commercial transactions. In the north, a typical first quarter sales of commercial property exceed $1M dollars, but in 2026, sales didn’t even reach the $500K mark.

Mobile Home Report

While these transactions involve classified personal property rather than real estate, mobile homes provide an important housing option, particularly in North and Central Berkshire markets. Understanding this segment helps paint a more complete picture of available housing and solutions for residents seeking affordable alternatives. This was a very notable quarter for northern Berkshire mobile home sales, which rose considerably over the previous five year first quarter reports. The dollar volume of those sales transacted also rose considerably with an average price now over $100,000.

What to expect next: (Please see the Full Q1 2026 Report for full explanations and data) 

While there is a general expectation that mortgage rates may ease slightly as we move further into 2026, the forecasters we rely upon aren’t predicting big shifts from their year-end predictions. It’s clear we’re not going back to the ultra-low rate environment anytime soon, and both buyers and sellers must continue to adjust their expectations accordingly. Remember though, forecasts are far from guaranteed, especially when things keep changing at such a rapid pace.

We are just entering a time when sellers start to prepare their homes to list on an active spring market and buyers prepare to jump in expecting more inventory. It is the critical point that could be impacted by some of these global concerns felt locally in the quarter ahead.

From a housing standpoint, we’re seeing inventory slowly increasing, which gives buyers more options, and sales activity is expected to tick up slightly compared to the past couple of years. Home prices, however, are not expected to surge. Most nationwide projections call for relatively flat growth, meaning pricing strategy will continue to matter more than ever.

What does this mean for your business?

Simply put, this is a professional, skill-driven market. Transactions are happening—but they’re taking longer, requiring more negotiation, and demanding clearer communication with clients. buyers are more cautious. Sellers need to be more realistic. And agents who can guide both sides through that process will stand out.

As always, we’ll continue to keep you informed as conditions develop.

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