Berkshire County
Market Watch FIRST QUARTER 2015
William Pitt Julia B Fee browse all mls listings and learn more about the market at
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MARKET WATCH • 1
Berkshire County
11-Acre Estate, Tudor Masterpiece, Golf Course Living Pittsfield, MA more • Web ID:the 207492 2 • MARKET WATCH browse all mls• listings and learn about market at williampitt.com and juliabfee.com
Berkshire County
1
The Southern Berkshires hibernated in the first quarter of 2015 as the winter weather made house hunting difficult. The arctic cold and snow chilled the Berkshires housing market, particularly the Southern Berkshires area, which is predominantly comprised of second homes. Single family home sales in Berkshire County overall declined by 13% versus the first quarter of 2014. Sales activity in the Southern Berkshires, which was very strong in the first quarter of 2014, slipped 33% this quarter to its lowest level since the first quarter of 2012.
2
All metrics point to a weather-related slowdown. In addition to the closed sales declines, inventory levels were down by 15%, and new listings were down by 25%. These figures all point to a weather-related slowdown rather than a systemic issue, and we fully expect the market to pick up steam as we move into the beautiful weather months and visitors flock back to the region.
3
Sales were concentrated in the lower price categories. Dollar volume declined by 58% versus a year ago as buyers focused their attention on entry level homes. Relative to 2014 when ten homes sold in the first quarter at the $1,000,000+ mark, this year only three sold at that price point as buyers stayed indoors. The highest sale of the quarter was a modern set on Southern Berkshires 28 pastoral acres in Alford, originally listed at $2,400,000 and closed at $1,950,000. Closed Dollar Volume * Closed Sales * (units)
4
Clos
(units)
Prices have softened slightly.
90
$45
120
On both a quarterly and a twelve-month basis, the median selling price in the Southern Berkshires has declined. From the first quarter of 2014 to the first quarter of 2015, the drop was 17%, and on a 12-month basis, it was 9%.
80
$38
115
$31
110
$24
105
$17
100
$10
95
70
+3%
60 50 40
5
(millions)
Nor
-33%
1Q 2014
-58%
1Q 2015
1Q 2014
1Q 2015
In contrast to the Southern Berkshires, the Northern Berkshires experienced a Southern Berkshires positive first quarter.
Northern Berkshires
Closed Dollar Volume * Closed ClosedSales sales* were 4% higher than the same
Closed Sales *
Closed Dollar Volume *
(units) time
(units)
(millions)
(millions) last year due to the market strength in $45 Williamstown, Pittsfield and Dalton. The median 80 selling prices were stable for both the quarter and$38 the 12-month period at approximately $146,000. $31 70
90
+3%
60 50 40
-33%
1Q 2014
1Q 2015
1Q 2015
$22
115
$21
110
+4%
+1%
$20
$24
105
$19
$17
100
$18
$10
95
-58%
1Q 2014
120
1Q 2014
1Q 2015
1Q 2014
1Q 2015
$17
* Single Family Homes Only
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MARKET WATCH • 3
CLOSED SALES SCHOOL DISTRICTS
MONTHS SUPPLY OF INVENTORY
% CHANGE 1Q14 1Q15
1Q14 VS 1Q15
DAYS ON MARKET (under contract properties)
% CHANGE 1Q14 1Q15
QUARTERLY MEDIAN SELLING PRICE
% CHANGE
TWELVE MONTH MEDIAN SELLING PRICE
% CHANGE
% CHANGE
1Q14 VS 1Q15
1Q15
1Q14 VS 1Q15
1Q14
1Q15
1Q14 VS 1Q15
1Q14
1Q15
1Q14 VS 1Q15
BERKSHIRE COUNTY
194
168
-13%
20
18
-10%
177
7%
$200,000
$172,000
-14%
$186,000
$180,000
-3%
Southern Berkshire County
80
54
-33%
24
36
50%
231
-1%
$328,000
$267,000
-18%
$300,000
$268,000
-10%
Alford
3
2
-33%
10
9
-10%
225
-71%
$266,000
$1,118,000
320%
$515,000
$1,398,000
171%
Becket
5
5
0%
28
29
4%
251
-6%
$150,000
$223,000
48%
$173,000
$217,000
25%
Egremont
9
2
-78%
19
42
121%
225
21%
$475,000
$291,000
-39%
$527,000
$359,000
-32%
Gt. Barrington
11
11
0%
28
22
-21%
230
-17%
$264,000
$268,000
1%
$319,000
$262,000
-18%
Lee
12
4
-67%
18
42
133%
108
-48%
$234,000
$208,000
-11%
$239,000
$236,000
-10%
Lenox
10
7
-30%
30
36
20%
209
-26%
$457,000
$312,000
-32%
$371,000
$278,000
-25%
Monterey
5
1
-80%
25
16
-36%
355
91%
$765,000
$1,100,000
44%
$419,000
$561,000
34%
Mt. Washington
0
1
n/a
n/a
7
n/a
no uc props
n/a
no sales
$140,000
n/a
$98,000
$232,000
137%
New Marlborough
3
6
100%
52
23
-56%
193
32%
$715,000
$165,000
-77%
$445,000
$343,000
-23%
Otis
5
2
-60%
38
42
11%
189
-10%
$385,000
$170,000
-56%
$262,000
$220,000
-16%
Richmond
5
0
n/a
23
n/a
n/a
no uc props
n/a
$675,000
no sales
n/a
$455,000
$317,000
-30%
Sandisfield
4
1
-75%
27
26
-4%
187
-22%
$231,000
$195,000
-16%
$249,000
$254,000
2%
Sheffield
4
5
25%
39
40
3%
392
89%
$282,000
$270,000
-4%
$287,000
$285,000
-1%
Stockbridge
8
5
-38%
18
14
-22%
249
54%
$371,000
$410,000
10%
$430,000
$332,000
-23%
Tyringham
0
0
0%
n/a
n/a
n/a
no uc props
n/a
no sales
no sales
n/a
$628,000
$333,000
-47%
West Stockbridge
1
2
100%
27
7
-74%
136
-18%
$625,000
$344,000
-45%
$498,000
$419,000
-16%
4 • MARKET WATCH
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CLOSED SALES SCHOOL DISTRICTS
% CHANGE 1Q14 1Q15
Northern Berkshire County
MONTHS SUPPLY OF INVENTORY
1Q14 VS 1Q15
DAYS ON MARKET (under contract properties)
% CHANGE 1Q14 1Q15
QUARTERLY MEDIAN SELLING PRICE
% CHANGE
TWELVE MONTH MEDIAN SELLING PRICE
% CHANGE
% CHANGE
1Q14 VS 1Q15
1Q15
1Q14 VS 1Q15
1Q14
1Q15
1Q14 VS 1Q15
1Q14
1Q15
1Q14 VS 1Q15
109
113
4%
15
11
-27%
147
261%
$148,000
$146,000
-1%
$150,000
$148,000
-1%
Adams
13
11
-15%
10
10
0%
211
122%
$103,000
$135,000
31%
$111,000
$135,000
22%
Cheshire
3
4
33%
10
8
-20%
257
64%
$168,000
$107,000
-36%
$159,000
$137,000
-14%
Clarksburg
2
1
-50%
14
14
0%
262
251%
$108,000
$134,000
25%
$128,000
$112,000
-13%
Dalton
9
12
33%
16
12
-25%
170
123%
$150,000
$147,000
-2%
$171,000
$163,000
-5%
Florida
1
1
0%
2
3
50%
14
-93%
$200,000
$76,000
-62%
$162,000
$111,000
-31%
Hancock
1
2
100%
12
8
-33%
9
800%
$525,000
$227,000
-57%
$414,000
$208,000
-50%
Hinsdale
2
1
-50%
6
17
183%
61
-74%
$276,000
$128,000
-53%
$244,000
$145,000
-41%
Lanesboro
7
6
-14%
7
12
71%
72
-31%
$218,000
$187,000
-14%
$174,000
$190,000
9%
New Ashford
0
0
0%
n/a
n/a
n/a
no sales
n/a
no sales
no sales
n/a
$335,000
$350,000
5%
North Adams
12
9
-25%
25
23
-8%
172
-17%
$117,000
$131,000
12%
$118,000
$116,000
-2%
Peru
0
0
0%
8
no sales
n/a
no sales
n/a
no sales
no sales
n/a
$145,000
$151,000
4%
Pittsfield
51
54
6%
13
9
50%
116
24%
$155,000
$150,000
-3%
$153,000
$147,000
-4%
Savoy
0
1
n/a
n/a
7
n/a
59
n/a
no sales
$170,000
n/a
$140,000
$150,000
7%
Williamstown
5
10
100%
42
12
-71%
248
4%
$263,000
$220,000
-16%
$310,000
$256,000
-17%
Spectacular Turn-of-the-Century Berkshire Estate • Tyringham, MA • Web ID: 206204
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MARKET WATCH • 5
Where We Are Headed
100 Acre Country Estate • Williamstown, MA • Web ID: 208356
2015 has begun on a strong note. Buyer enthusiasm is high, and sellers are actively putting their homes on the market. We expect this energy to continue through the year as the economy further strengthens and consumer confidence improves, while stabilized prices, excellent inventory and the threat of a rise in interest rates stimulate buyer activity. So what could slow 2015 sales growth? According to Lawrence Yun, Chief Economist for the National Association of Realtors, the factors are three-fold: “The anticipated rise in interest rates (which is also moving some buyers into the market), lenders being slow to ease underwriting standards back to normalized levels and homeowners unwilling to move because they are comfortable with their current low interest rate.” Any one of these potential speedbumps could slow the increased pace of sales this year. New construction and renovated homes are anticipated to remain hot buttons as buyers of all ages seek quality homes in move-in condition. Close to town is also expected to remain a highly desirable trait, satisfying the consumer desire for a sense of community and convenience. We expect the appetite for lower-priced housing to continue to grow as younger buyers enter the market in ever-greater numbers. The challenge will be ensuring supply to meet the needs of this buyer segment. Ultimately we are bullish on 2015. Economic factors as well as first quarter activity all point to a strong year ahead with sustained, manageable growth in unit sales and stable pricing.
Information Sources: Case-Schiller reports, Various MLS services, National Association of Realtors, Connecticut Economic Digest, local mortgage brokers, Realty Trac., HGMLS, CMLS, CT-MLS, NCMLS, DARMLS, Greenwich MLS, BCBOR. While information is believed true, no guarantee is made for accuracy.
6 • MARKET WATCH
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