As predicted, the first quarter of 2012 proved to be the beginning of a turning point in the Nantucket real estate market. The number of sales was up 32%, and the dollars that those sales represent was up 30%, compared to the first quarter of 2011. The average price of all properties sold was $1,172,000 and the median price was $805,000. Sales in the first quarter broke down to 16 under $500,000; 33 between $500,000 ‐ $1 million; 20 between $1 and $2 million; 10 between $2 and $3 million; 1 between $3 and 4 million and 2 over $5 million. The sector of $1 ‐ $3 million has shown the most improvement. The strengthening market is largely due to renewed consumer confidence and the awareness that this buyer’s market will not last forever. Some of the best opportunities for buyers have been snapped up in the past few months.
There were 82 sales on Nantucket during the first 3 months of 2012 – 72 homes, 6 parcels of vacant land and 4 commercial properties. The average selling price of a home was $1,209,000; the median was $825,000. Vacant land is selling for an average price of $634,000 and a median of $550,000. Commercial property is selling for an average of $1,314,000 and a median of $575,000 which is a very good sign since commercial property is usually the last to recover from a recession. The average time on the market for those properties sold during the first quarter has jumped to 302 days. The average and median prices still declined slightly, but only 3% from the previous year. Distressed properties (foreclosures or short sales) tend to be largely in the lower price sector, bringing the average and median down. Foreclosures or short sales of bank‐owned properties accounted for 10% of the sales in the first quarter. Once the foreclosure inventory is cleared out of the market, average and median prices will start to climb.
There are currently 443 residential properties listed for sale on Nantucket, slightly lower than one year ago at this time. There are 366 homes (including condominiums and cooperatives), and 77 parcels of vacant land listed. These numbers will rise as we enter our spring market. The average time on the market has risen slightly to 10 months but this will come down as we enter our busiest season. As of the end of the first quarter there are over 60 pending sales with an estimated market value of $140 million. The first quarter saw $96 million worth of real estate change hands which puts us on track to exceed the $531 million in sales that occurred in 2011. As always, we will be closely monitoring the market this coming season as 65% of sales on Nantucket close during the last two quarters of the year.
Nantucket is currently undergoing the island‐wide property revaluation, as required by the Department of Revenue of the Commonwealth of Massachusetts. Market activity for the three years leading up to the revaluation is taken into consideration ‐ 2009, 2010 and 2011, some very challenging years in Nantucket real estate. The new assessments come out in July 2012 for FY 2013. It remains a great time to buy on Nantucket. We are looking forward to more the statistical evidence of the evolving market conditions. In the meantime, if you have been thinking that now is a good time to buy on Nantucket, there may not be a better time to come in the near future. A minor word of caution for sellers: the good market news has not yet translated into appreciation again on Nantucket. But it will – it is only a matter of time.