Now for some good news. The numbers are in for the first quarter, and although we knew there were signs of market recovery, we now have statistical evidence to support that business is on the increase. The number of sales in the first 3 months of 2010 more than doubled compared to the same period in 2009. The dollars that these sales represent increased from $53 million in 2009 to over $108 million in 2010. We attribute the change in the market to a number of factors including increased consumer confidence. A poll done by the National Association of Realtors indicates that 2/3 of people in this country feel that now is a great time to buy.
How will the year shape up? We are reluctant, with only one quarter under our belts, to predict what the rest of the year holds. However, there are at any given time, between 30 and 40 properties under contract, totaling about $50 million. This is a good leading indicator of the direction we are heading in. There were 237 total sales in 2009 with a dollar volume of $435 million. We are currently on track to exceed that; by how much remains to be seen.
What about prices? The average price of a home and vacant land has been sliding down since 2008. The average home price was $2,271,000 then; it is now $1,841,000, about a 20% decline. The median selling price of a home was $1,425,000, and now it is $1,050,000, a decline of 26%. The first quarter of this year saw the smallest decline in average values in the past 3 years.
Who is buying on Nantucket now? We can’t generalize about who is buying now except to say that buyers are informed, qualified and recognize a good opportunity. A number of our buyer clients are those who have had a connection to Nantucket, perhaps as renters, and who recognize that the past few years offered the best climate for buyers that we have seen in years. Many sellers have priced their properties correctly (in some cases after years of chasing the market down) for the current market which is also helping to increase activity.
Nantucket real estate has significantly outperformed other financial market indices. The average Nantucket house is worth 277% more than it was 10 years ago. A vacant lot on the island is worth 206% more than it was 10 years ago. The Dow Jones Industrial Average is worth 5 % less than it was 10 years ago. Historically, Nantucket has been fortunate to feel the effects of an economic downturn later than other markets and typically recovers more rapidly.
Owning property on Nantucket is about much more than just a real estate investment. We have long known that owning property enabling a family to spend time on the island is about much more than simply making an investment. It is about the opportunity to become part of this special place: our natural world, history, culture and the community. We feel fortunate to call Nantucket home. Come for a visit or come to stay!