Real estate agents in the Berkshires are reporting high buyer demand for vacation homes. This 2,200-square-foot home in Sheffield features two master-bedroom suites, a two-car garage and an oversized deck with scenic views. The home is listed for sale at $399,000.
Part Two of Two Parts
It’s no longer a secret: The Berkshires is the place to be for people seeking a peaceful getaway from their hectic daily routines.
A look at recent home sales in this popular vacation destination bears that out. Demand for vacation homes in the region has been steadily growing, so much so that prices for some single-family homes in the area have shot up by as much as 20 percent in a year, according to local Realtors.
In all of Berkshire County – which includes communities like Pittsfield that lack a significant second-home market – median prices for single-family homes climbed 8 percent during the first five months of 2002 compared to the same period last year, while condominium prices jumped 19 percent during the same time, according to statistics gathered by The Warren Group, parent company of Banker & Tradesman.
“The major problem we have here is there’s no inventory [of homes offered for sale],” said Mary White, broker-owner of Barnbrook Realty in Great Barrington. “There’s more demand than there is supply.”
Buyers who can’t find a home in Southern Berkshire County to suit their needs are snatching up land instead and building their dream vacation homes, said White.
The housing market in the Berkshires stands in stark contrast to what’s happening in Nantucket, another vacation hot spot in Massachusetts. In Nantucket, the median price for single-family homes sold during the first part of the year dropped 17.6 percent – from $850,000 a year ago to $700,000. But in Nantucket – which caters to an extremely affluent clientele – home prices are significantly higher than in the Berkshires.
William Brinker, owner of Apple Hill Realty in Great Barrington, said that while real estate in the Berkshires is not inexpensive, buyers can still find a piece of land to build a home.
“We still have room,” said Brinker, referring to developable land.
Also, unlike Nantucket and Cape Cod, the Berkshires are considered a year-round vacation destination. Restaurants, shops and other attractions remain open throughout the year. In the spring and summer, visitors can enjoy the lakes, camping in the mountains, golf, theater, museums, antique shops and music concerts at Tanglewood. In the fall, the picturesque vistas light up with the brilliant hues of leaves, and in the winter, there is skiing and snowboarding.
Land ‘Scarce’
While there was a temporary lull in buyer activity in September and October of 2001, sales picked up again in later months, according to longtime real estate agents serving Southern Berkshire County. Buyers, particularly those from the New York area who were still reeling from the Sept. 11 terrorist attacks, expressed a need for a place to which they could escape from the uncertainty of the times.
“The market has really exploded since [Sept. 11],” said White, who is president-elect of the Berkshire County Board of Realtors.
There were 492 single-family home sales from January through May of this year in all of Berkshire County. The median price for single-family homes sold during those months was $123,000, 8 percent higher than last year’s median of $113,705.
During the same months, median sales prices for single-family homes were significantly higher in five southern Berkshire towns – Egremont, Lee, Lenox, New Marlboro and Sheffield – where second-home sales make up a good part of the real estate market.
The average median price for homes sold in those communities between January and May of this year jumped 69 percent from a year ago. The median price was $244,016 through May 2002, according to The Warren Group, compared to $173,633 a year ago.
In addition, the average price for single-family homes sold through May in all of Berkshire County was $191,188 – 8.7 percent higher than the same period a year ago, according to multiple listing service statistics provided by the Berkshire County Board of Realtors. Those statistics would not reflect homes sold by owners without the aid of real estate agents.
Buyers searching for homes in the Berkshires during the first few months of 2002 had fewer homes to choose from than a year ago. As of May 2002, there were 986 single-family homes and condos listed for sale in all of Berkshire County. Those statistics include a few homes in Connecticut, Vermont and New York posted on Berkshire’s MLS, according to the board. That represents a 13.5 percent drop from the 1,141 single-family homes and condos listed for sale as of May 2001.
Berkshire County Realtors are not alone when it comes to a low supply of for-sale second homes. Realtors across the country are reporting a shortage of recreational property for sale, which helps boost prices even more and makes it easier for sellers to sell existing second homes, according to real estate experts.
On a countrywide level, the National Association of Realtors predicts that second-home sales will continue to be strong in upcoming years, partly because of demographics. Large numbers of people in their 40s and 50s will be entering the second-home market, driving up demand and prices, according to NAR.
The national median price for a second home, both new and existing, in 2001 was $162,000 – 26.8 percent higher than the 1999 median price of $127,800, according to a NAR survey titled “Profile of Home Buyers and Sellers.” Data is not available for the year 2000 because NAR conducts the survey every other year.
The NAR study also showed that single-family second-home sales were down 4.8 percent in 2001 compared to 1999. There were 359,000 single-family second-home sales in 2001, compared to 377,000. But NAR leaders said the slight sales drop was a result of last year’s recession and that the sales price spike is evidence that buyer interest remained strong.
In the Berkshires, Realtors have been witnessing the renewed buyer interest for several months now. Buyers from New York, Connecticut, New Jersey, Boston and as far south as Washington, D.C., are flocking to the region in search of a peaceful vacation away from the hassles of daily life.
White, who has been in the business since 1978, said that up until two years ago, she had only sold two houses to people from the Greater Boston area. That’s not the case today. Recently, White has met buyers from Arlington, Carlisle, West Roxbury and Weston, who are discovering that it’s a lot easier to get to the Berkshires than fighting the crowds and traffic on Cape Cod.
Some buyers are choosing to completely relocate to the Berkshires, either commuting to jobs in Manhattan and other parts of New York part of the week, or working from home offices. In fact, Realtors in the area have grown accustomed to hearing buyers ask whether a home has high-speed Internet access.
Demand is particularly strong for condominiums, waterfront property or homes near the water, as well as properties near Tanglewood, the summer home of the Boston Symphony Orchestra, said Pamela Roberts, broker-owner of Roberts & Associates Realty in Lenox.
Brinker said many of today’s second-home buyers are searching for a large home – with anywhere between 2,500 and 3,000 square feet of living space – in a location that affords privacy yet is convenient to the town restaurants and shops. They also want homes with an open, airy feeling, he said.
In an area known for its traditional New England farmhouses, finding a home that fits this description can be difficult, according to Brinker. As of last week, there were only 54 homes on the market in Southern Berkshire County that were priced between $300,000 to $500,000 – a sought-after price range – and of those homes, only 22 had as many as three bedrooms.
Buyers can find a “basic house” on a “decent piece of property” but they will have to pour as much as $100,000 to $200,000 into the home to make it fit their needs, said Brinker.
For $300,000, a buyer can purchase a home that will need renovations, said Brinker, and for $500,000 a buyer can pick up a home that might be the right size and in a good location and does not need as much work.
By September, Brinker predicts that the price for the desirable home with little or no renovation needs will climb to $550,000.
Second-home searchers will often wait to find the right home, while others choose to build a new home, according to real estate agents. Those who are selecting to build are constructing larger homes, according to White. In Alford, expansive homes on five- and 10-acre lots are popping up, she said.
There are also housing developments in the works in various communities. In Great Barrington, for example, a 102-unit mixed-income housing development is planned for the northern part of town. Twenty-five homes in the development will be sold below market-rate prices, from between $85,00 to $105,000. The market-rate units will be sold at prices starting at $235,000.
For those who can’t find the perfect existing home or land to build on, there are other options. “Because of the way the market is driven … some will look at a longtime rentals,” said Roberts.
