It is somewhat surprising that with so few people on-island this time of year, we are still very busy with real estate activity.  Perhaps it is the intermittent warm and sunny days that has been stimulating property visits…perhaps it has simply been the ideal time to be looking for that perfect vacation home on an island 27 miles out to sea.

Whatever the reason, there are buying opportunities on Nantucket.  Here’s a look at what happened in real estate on-island in 2011.

• A total of 384 properties were sold.  2^nd, 3^rd and 4^th Quarters tied in terms of the number of properties sold; there were 105 properties sold in each Quarter.  69 properties were sold during 1^st Quarter.  While the total number of properties sold declined 7.47% from the 415 properties sold in 2010, they were 21.86% higher than the 300 properties sold in 2009 and 25.78% higher than the 285 properties sold in 2009.

4^th Quarter’s total volume of $172.48 million in sales was followed by 2^nd Quarter’s $154.46 million, 3^rd Quarter’s $141.46 million and 1^st Quarter’s $74.01 million.

• Total sales volume for the year was $542.4 million. This was 21.4% below 2010’s $690.05 million, 21.87% higher than 2009’s $445.08 million and 4.51% below 2008’s $568.05 million.

The average real estate transaction in 2011 was $1.413 million, which was 15.03% lower than 2010’s $1.663 average sale price, 4.78% lower than 2009’s $1.484 average sale price and 29.1% lower than 2008’s $1.993 million average sale price.

• There were 260 single-family homes sold in 2011 compared to 253 in 2010, 164 in 2009 and 174 in 2008.

Average home price in 2011 was $1.635 million, 26.15% lower than 2010’s average price of $2.214 million, 26.88% lower than 2009’s average price of $2.236 million and 36.16% lower than 2008’s average price of $2.561M.

Single-family dwellings sold, on average, for approximately 88.5% of their most recent asking price, 83.1% of their original asking price and 101% of their current tax valuation.  Moreover, while there were exceptions, since late 2010 we have continued to observe a strong correlation between a property’s tax valuation and its actual selling price.

The good news: the number of island foreclosures dropped to its lowest point in three years to 23 units representing 2% of market (down from 35 units and 7% of market in 2010 and 25 units and 6% of market in 2009).

• Land sales reached their highest level since 2007 in both number and dollar volume.  43 parcels sold in 2011 compared to 42 in 2010, 35 in 2009 and 32 in 2008.

Average sale price for land was $1.853 million for a 76.48% increase over 2010’s average sale price of $1.050, 128.2% higher than 2009’s average sale price of $812,000 and 19.55% higher than 2008’s average sale price of $1.550 million.

In 2011 four land parcels sold for more than $5 million each (ranging from $5M – 12.6M).  Without these properties, average land prices were $1,063,350 or 1.28% higher than 2010’s average sale price and 30.9% higher than 2009’s average sale price.

The change in Nantucket sale prices in 2011 definitely reflects the downward correction many primary housing markets have also experienced. However, the difference is that while most primary markets experienced this adjustment within about a two-year period it took nearly four years to equally affect real estate values here on-island.

Conclusion: We may have reached our market’s low point.  In December 2011 and January 2012 there has been increased activity that’s translated into sales.  Buying opportunities exist and this may be a very good time to invest in Nantucket real estate. For Sellers, this may be a good time to list their property.  Inventory is at its lowest point, for this time of year, since 2008…a good environment to introduce properties into the marketplace.