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Nantucket’s Calming Influence…
An Early Spring On Nantucket
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Nantucket Real Estate Update – March 2012
During the first 3 months of 2012 the number of properties sold on Nantucket each month has been consistently higher than for the same time periods since 2009.
While the number of properties sold may be higher, March’s dollar volume was lower than last year’s dollar volume for the same month (unlike January and February).
Average and median single-family home prices dropped during this same time period.
Most telling is the type of property being sold. In March 2012 the majority of single-family home sales were less than $1 million with no property selling for more than $3 million.
While the average selling price for single-family homes in March was 73.66% of original asking price and 88.17% of most recent asking price, there was a distinct variation within the various price ranges. The one property selling for more than $2.5 million sold for 50% of its original asking price while the 2 properties selling for $2 million to $2.5 million sold for an average of 93.29% of their original asking price.
Bottom line: Real Estate on Nantucket is selling and activity is picking up. With 448 properties currently on-market (305 of which include a single-family dwelling), there’s a wide variety of properties available. On average, we’ve already seen a 6.97% reduction from original asking price for all properties currently for sale and a 7.14% reduction for single-family homes currently on-market; a sign that Sellers have increasingly become more realistic. With historically low interest rates, a significant number of property choices and more realistic pricing, now is a very good time to start thinking about buying on Nantucket.
A Town Meeting On Nantucket
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Staying Fit On Nantucket
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Down At the Nantucket Boat Basin
Granted, some days are better than other, even on Nantucket. With warm temperatures, plenty of sunshine and a gentle breeze, spending a little time down near the Boat Basin was a spectacular way to to spend a little time enjoying it.
While walking on the dock today I spotted a scallop fisherman returning from a successful day of fishing.
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While I was impressed with his two full crates, he told me that it’s been a rather slow year. “Too warm” he said, “not enough foul weather to stir up the water and move the Eel grass around”. With water temperatures almost 10 degrees warmer than normal this year, he said this year’s catch is only at about 18 ton so far, short of the 30 ton average they’ve gotten use to over the last few years, and along way from the 70 tons they use to catch when he was a kid.
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Not easy work, but I’m sure glad he was able to find some…
Preserving Historic Homes On Nantucket…
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Nantucket Real Estate Update – February, 2012
While not normally the busiest real estate month on Nantucket; this past month was the busiest February since 2006 for the number of units sold and second only to 
February 2010 in terms of volume. Real estate sales totaled $42,005,868 this past February, which was 83.12% higher than 2011’s February, 25.8% below 2010’s February and 206.2% higher than 2009’s February.
Most telling is that in 2010 one property sold for more than $19 million, two sold for more than $5 million and two more sold for more than $4 million. In 2012 only one property sold for more than $5 million and another sold for more than $4 million. If the $19 million dollar sale in 2010 were pulled from this data, February 2012 would be considered the highest sales volume February since 2008 (the $19.2 million sale accounted for 33.9% of that month’s sales volume).
A total of 31 properties sold o
n Nantucket in February 2012 compared to 19 during the same month in 2011, 21 in 2010, 11 in 2009 and 17 in 2007. This translates into February 2012 having 63% more units closed than in February 2011, 47.6% more than in 2010 and 181.8% more than in 2009.
As indicated in the graph, we have been experiencing a positive trend in sales during this time of year, one that is evident in the number of sales and the dollar volume those sales represent.
Below is a breakdown of the single-family dwellings sold on Nantucket during February as well as a year-to-year comparison of all properties sold.
The average sale price for all properties sold during February was 82.3% of original asking price, 89.1% of most recent asking price and 101% of current assessed valuation. The average selling price for single-family dwellings sold in February was 82% of original asking price, 88.68% of most recent asking price and 100% of current assessed valuation. However, this was somewhat distorted by the sales of 18 Orange Street at 142.7% of current assessed valuation and 87 Cliff Road at 301.3% of current assessed valuation – both of these properties were the ones selling for more than $4 million. Without these two sales the average selling price would have been 79.9% of original asking price, 87.15% of most recent asking price and 89% of current assessed valuation (for the other 22 single-family dwellings sold in February).
Bottom line: While winter may seem like an unlikely time to purchase real estate, on Nantucket our real estate activity has been brisk with February’s numbers showing a continuing improvement in the marketplace. We believe it’s going to be a good Spring with several new properties coming to market and sellers adjusting their prices to better attract buyers to those properties that have been on-market an extended period of time.
If you would like a comprehensive look at the real estate activity on Nantucket in 2011, you can download copy of the “2011 Nantucket Property Yearbook” published by the Nantucket Association Of Real Estate Brokers (“NAREB”) by clicking below.
The First 60 Days Of 2012 On Nantucket
Can you really tell very much about the overall real estate market by looking at a 60 day period? On Nantucket, the first 60 days of 2012 have been exciting. For instance:
- We’ve seen 46 properties closed (the highest number of closings since 2006, during the same time period)
- Total sales volume exceeded $62 million (a 55.3% increase over last year’s volume during the same time period)
- These 46 properties sold for an average of 81% of their original asking price; the highest average since 2007 (tied with 2008′s sale/ask ratio)
- There was a 18.7% increase over last year’s average selling price for all properties closed during this time period.
- There was a 18% increase over last year’s average selling price for single-family homes closed during this time period .
As shown in the chart above, Nantucket real estate activity is still a long way from the exciting real estate days experienced in 2005 and 2006. However, properties are selling and they are selling briskly.
If you eliminate foreclosures, this past 60 days has seen more properties closed, within this time period, than had occurred since January/February 2006. Most impressive is the steady climb in closings that have occurred (during this time period) since 2009; both in overall transactions and for sales of single-family dwellings.
While average sale prices may not at first appear to be improving, both sales numbers and averages were greatly impacted in 2010 by the sale of one property for $19,200,000. Eliminating this one property from the data reduces 2010′s average sale prices to just below 2009′s level (in both categories). In other words, during this first 60 days of 2012 there has been an increase in average sale prices we haven’t experienced since reaching our peak sales averages in 2008.
While this first 60 days sales numbers show promise, a tightening up of “asking price” versus “sale price” is also evident. Both sellers and buyers have become more realistic about the real estate market on Nantucket and several recent listings reflect that reality.
Buyers are looking for value and are hesitant to pay above fair market value for property on Nantucket at this time. We are experiencing sales activity because buyers are finding properties whose owners are ready and willing to reduce their asking price in order to sell their property. While we don’t look for the Nantucket real estate market to return to the “go-go days” of 2003-2006 anytime soon, recent activity indicates that there are buyers out there who want to invest in Nantucket real estate. In spite of what may be occurring elsewhere, we expect this increased interest in Nantucket real estate to continue through March and the rest of 2012.
Nantucket Has A New Citizen
Comin’ To America
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