The real estate market on Nantucket was somewhat unpredictable for most of 2019 with some significant drops in both the number and dollar volume of sales during the first half of the year. The good news is that the market seems to have rallied somewhat during the last two quarters of 2019. There were 472 sales (-13%) for $1,027 billion (-15%) in 2019. This is the sixth year that total sales on island exceeded $1 billion (not consecutive). The average sale is now $2,177,000, compared to $2,214,000 at the end of 2018, a decrease of only 2%. Properties are currently selling, on average, for 89% of the list price at the time of sale and for 120% of the assessed value.
The price of an average home on Nantucket is now $2,481,000, down 5% from $2,615,000 in 2018. The median price of a home is now $1,670,000, compared to $1,750,000 last year. The average vacant lot on Nantucket is selling for $1,453,000, down 17% from 2018, and the median lot is $975,000, down 6%. Commercial sales were strong in 2019 with 19 properties selling for a total of $77+ million, a 31% increase over commercial activity in 2018.
One of the most significant changes is the length of time it takes to sell a listing in the current market. As of the end of 2019 the average time on the market was 10 months (up from 9 months in 2018 and 8 months in 2017). As always, there are a number of factors involved including overpricing by many sellers, high amount of inventory, lack of urgency on the part of buyers and a generally unsettled feeling about the economy and the future. Simply put, it is taking longer for properties to sell on Nantucket.
As of the end of the year there were 286 active listings, compared to 321 in 2018 and 266 in 2017. For these listings the average listing price is $3.6 million and the median listing price is $2.6 million (higher than the average selling price) and the average time on market is 264 days. There are currently 211 single-family residences for sale, 43 parcels of vacant land, 10 condominium properties, 16 commercial properties, 5 multi-family and only 1 covenant house (restricted affordable in perpetuity). Single family homes range from $449,000 to $25 million. There are only 9 single-family homes on Nantucket listed under $1 million. Vacant land ranges from $330,000 to $7.5 million.
There were only 17 sales under $500,000 in 2019 and most of those were restricted to affordability. The most active price sector last year was $1-$2 million with 162 sales. This was followed by $500,000 – $1 million with 113 sales; $2-$3 million with 71 sales, $3 – $4 million with 46 sales and $4-$5 million with 23 sales. Between $5-$7 million there were 16 sales and there were 12 sales between $7-$10 million. Lastly, there were 5 sales in excess of $10 million on Nantucket in 2019.
After a bumpy start to the year, the US economy experienced moderate economic growth in 2019 with continuing low unemployment (3.5%), easing trade tensions and low interest rates. The US Central Bank has signaled that it could keep interest rates unchanged through 2020 after reducing borrowing costs three times in 2019. In mid-summer the yield curve inverted back, helping to boost consumer confidence which, in turn, impacted market performance. Consumers appear set to continue driving the economy and a bullish stock market and, despite the fact that it is a presidential election year, 2020 looks to be similar to 2019.