We are especially excited to welcome spring this year after one of the longest, snowiest and stormiest, winters in memory. Winter is finally releasing its grip on Nantucket with longer days, actual warmth from the sun (when it is out) and signs of daffodils and forsythia coming into bloom. Nantucket seemed even quieter this past winter than usual, possibly due to the weather making travel both on and off island more challenging than ever. We are looking forward to seeing old friends, and new, for the Daffodil Festival, the last weekend in April. Fingers crossed for some sun!
The real estate market on Nantucket continues a steady recovery with the average selling price of all properties on the island now at $1,755,000, compared to $1,532,000 at the height of the recession. The price of an average house on Nantucket is now $2,210,000, the highest it has been since 2008. The average lot is now $944,000.
1st Q Report: There were 89 sales for a total of $156 million in the first quarter of 2015. Activity was slightly off from 2014, likely due to the weather which prevented people from reaching the island. We are confident that 2015 will again be a strong year for real estate on Nantucket, a good thing, in that it impacts so many sectors of our local economy.
Breaking Down the Market: In 2014 more than 25% of the total sales dollars were for properties selling for $5 million or more. These 35 sales constituted only 6% of total market share volume. To date in 2015 there have been 7 sales over $1 million, constituting 8% of the market. There were 44 residential sales under $500,000 in 2014; to date in 2015 there have been only 6, with an average listing time of 80 days. The most active price sector so far this year is under $1 million with 48 properties selling between $250,000 (vacant lot in Tom Nevers) and $987,500 (small antique home in Town). The highest price paid for a property on Nantucket so far in 2015 was $10,875,000 for a compound located in Brant Point on Hulbert Avenue, located across the street from the water.
Properties are Selling More Rapidly: From a high of 11 months on the market in 2009 to the lowest it has ever been, properties are now selling, on average, within 5.1 months of being listed. This is a very clear indicator of current market conditions: demand continues to rise and supply is much more limited than it was even one year ago.
Vacant Land: Fewer lots have sold this year compared to last year at this time, likely due to the lack of available inventory. Many local developers and builders recognized that the time to buy and start projects was 2013 and 2014.
Commercial Properties: In the first Q of 2015 there were 8 sales of commercial property, compared to 7 for all of 2014 and none in 2013. There is no question that the sale of commercial properties is one of the strongest indicators of consumer confidence in the market. There is a shortage right now of both commercial sales and rental listings, especially in Town.
Selling Margins as Indicators: Properties on Nantucket are now selling, on average, for 95.3% of list price at time of sale, the highest it has ever been since we started keeping track. The average sale as a percentage of assessed value is 139%, also the highest it has been in nearly a decade.
Spring Market: All indications are that business will be good this spring and summer. New listings are coming on the market each day, some that were previously listed in a weaker market and some that are completely new to the market. If you own property on the island and have been thinking of selling, you should give serious consideration to having an updated market assessment of your property. Nantucket real estate has come out of the recession strongly and definitively. Although values are still off somewhat from the previous height of the market in 2005, there is no question that the real estate market on Nantucket has turned around and is headed up.