May 12, 2010

The first quarter of 2010 compared to the first quarter of 2009 shows remarkable improvement for the Berkshire’s market. The number of single family homes now under agreement are up 40% over the previous period, the number of units sold are up 19% and the sold volume up a whopping 56% to over 38 million. Our median sale price is also on the rise, with a countywide average of $198,950.

Residential: Single Family

In single family homes, new listings are up 20%, for a net gain in the number of single family actively on the market up 9% over the 1st quarter of 2009. We are expecting that the next month or two will be equally strong based on our pending figures.

The major question for us, as it is for most areas, is how much of the recent gains are due to the homebuyer tax credits. Overall, our Northern Berkshire area, where the median averages around $138,000, has been the slowest market of the Berkshires. In contrast, our 2nd home market of Southern Berkshire reports significant gains, jumping from 9.8 million transacted in single family sales last year to 24.5 million... that’s an increase of 149%. And it wasn’t a few high end properties – the total number sold jumped 81% as well, from 33 in 2009 to 60 this year’s first quarter. Since our high end is moving, we’re confident that this trend reflects a genuine market improvement.

Condos

The condo market is also stronger than the previous year’s first quarter, up 71% in the number of condos sold, up 29% in the dollar volume transacted and most importantly, a huge jump in the pending sales figures, up over 200% from the previous 1st quarter.

Mutlifamily

Multifamily homes are still in a declining market, losing both sales volume and unit volume from previous years and periods. Across the Board, multifamily homes are down significantly when comparing 1st quarter data for 2009 with 2010.

Land

Lots and land are stabilizing and perhaps showing improvements. We are transacting more sales of raw land, and our pending are up significantly, but our sales volume is still lower than the previous year, showing a huge restriction in average sale prices. Cautiously optimistic is the appropriate term, I believe.