Atlantic East Nantucket Real Estate Newsletter summer 2017

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N A N T U C K E T

S U M M E R After the soggy weather of spring (we fondly refer to the previous two months as Mayvember and Juneuary), we are happy to report that summer weather has finally arrived along with the return of many friends and visitors to the island. Nantucket is bustling with activity - lots of fund raisers for your favorite local charity, sporting events and new restaurants and shops to explore. If you are on-island please stop by to say hello.

Real estate activity picked up at the beginning of July which is a typical pattern for our seasonal market. The numbers are in for the first half of the year and it is shaping up much like last year, with a few exceptions. Trends that remain the same as last year: the average sale price is $1,821,000; properties are selling, on average, for 90% of list and the median home price of $1,525,000 is exactly the same as in 2016.

Differences in the market so far are: the number of transactions has declined 17% compared to the same time last year (215 versus 258). One reason is that there is a limited amount of inventory and buyers are willing to wait to find a property that exactly fits their needs. Total dollars for the first half of 2017 are down 9% ($391 million versus $428 million).

The story of the summer is that the high end of the market is performing better than it did at this time last year. To date 13 properties have closed over $5 million and there are currently 6 pending sales over $5 million. Of the six properties now under contract, four were listed over $10 million and each one will be undergoing a major renovation by the new owners. So far this year only 6 homes have sold under $500,000, representing less than 1% of the market. There have been 37 sales of homes between $500,000 and $999,000 (7% of the market). More than 90% of home sales have been over $1 million.

Of all sales (land, residential and commercial), the most active price sectors were between $1-2 million (58 sales) and between $2-4 million (49 sales). This sales activity is being spurred by second home buyers.

Continued on Page 2....

M A R K E T ( c o n t i n u e d

N E W S f r o m

P . 1 )

It is obvious to anyone on-island that there is a huge amount of construction going on. Much of this work is renovations and alterations of existing structures as it becomes more challenging for buyers to find vacant land. Last year 150 building permits were issued by the Town of Nantucket for new single family residences; to date there have been 86 issued in 2017.

At this time last year there were 440 active listings; there are only 363 properties listed today. Of these, 291 are single family homes. One of the more interesting market trends is that the sales of vacant land have declined. There is simply less vacant land available to build on than in the past. There have only been 26 lots sold this year; the average for the past 5 years is 87 lots annually.

Commercial property is in high demand whether to purchase or to rent, especially in the core Town district. There have been 5 commercial sales this year to date; most of them located out of Town because there is so little available in Town. (see article on page 3).

Economic indicators remain headed in the right direction, with lower unemployment and positive growth in the Gross Domestic Product. The stock market is over 21,500 and consumer confidence is on the rise. Last year there were a total of 534 sales for just under $1 billion. Statistics indicate that this year may be slightly down in volume and dollars.

Stay tuned as we head into the busiest months of the year for real estate on Nantucket.

Nantucket Real Estate Average Selling Price All Properties (000's) As of 6.30.17 2500

2000

1500

1000

500

0 Average Selling Price (000's)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 475

533

666

970

940

862

1001 1373 1801 1931 2135 2316 1834 1907 1532 1645 1597 1787 1717 1821 1821

Page 2

Sales By Location as of 6.30.17

COMMERCIAL ACTIVITY IN TOWN Since 2003 there have been 116 sales of commercial property in the core district of the Town of Nantucket. Of these, 29 were guest houses, inns or hotels, many of which have been converted to private residences. The average selling price of commercial property in Town between 2003 and 2005 was $2,628,000; between 2006 and 2012 it was $3,184,285 and to date in 2017 it is $2,379,533. It is challenging to extrapolate meaningful statistics from so few sales. Let's focus on one street: Main Street in the center of Town. Between 2003 and today there have been only 11 property transfers (excluding condominiums) on Main Street (including one property that has sold thrice in that time). Main Street can be viewed as a metaphor for the island as a whole: it is limited and in high demand. Here are the sales on Main Street since 2004: Date

Property Address

Sale Price

AreaThere is only one commercial property currently

1/29/2004

16 Main Street

$6,500,000

TOWNlisted

1/24/2006

47R and 51 Main

$5,250,000

10/10/2007

47 Main Street

$4,500,000

1/5/2008

54 Main Street

$3,200,000

on Main Street: 33 Main Street for $7,500,000. The brick building is located on the TOWN corner of Main and Federal Streets and has two stories with just over 4,000 s.f.. The property last TOWN sold in 2012 for $4,500,000. Only time will tell how TOWN much the property has appreciated since then.

2/8/2008

33 Main Street

$4,500,000

TOWN

4/10/2009

51 Main Street

$3,450,000

TOWN

10/30/2009

51 Main Street

$3,250,000

TOWN

5/2/2012

76 Main Street

$3,820,000

TOWN

10/26/2012

33 Main Street

$4,500,000

TOWN

12/20/2012

35 Main Street

$3,600,000

TOWN

11/13/2015

51 Main Street

$3,700,000

TOWN

Page 3

TOO MUCH STUFF? If you are interested in a do-it-yourself approach there are a number of sites on-island to help dispose of or obtain furniture, cars, household goods and almost anything else you can think of.

Nantucket Re-Use Exchange has been around the longest. If you are a seller, you can designate a portion, or all, of the proceeds to your favorite local charity.

Nantucket Consignments 2 is a public Facebook group, with over 5,000 members. Recent entries include a FREE white van, a 4 year old iron bed frame from Crate and Barrel ($100), a solid teak swing ($100) and a green birdhouse lamp for $15.

Nantucket Mansignments is another Facebook site (need to sign up) that says "Finally there is a site where people can stop selling dresses, maternity clothes and children's toys!!

We can sell manly stuff! Two rules- 1) No chick's stuff or children's stuff! 2) Money talks, malarky* walks!”

If you prefer to share the work load with a worthy non-profit, here are a few that will help you dispose of stuff: The Nantucket Hospital Thrift Shop (508.228.1125), the Nantucket Lightship Basket Museum (508.228.1177) and Seconds Shop (508.228.6677) which benefits Fairwinds Counseling Service (formerly Nantucket Behavior Health).

We also have some strong young people with a truck standing by to do moving jobs, help unpack boxes, dump runs, etc. Please contact us for more information. *modified from original language.

L A S T

M I N U T E

R E N T A L S

Every year we have a flurry of interest in rental homes at the last minute, and this year is no different. What is different is the amount of inventory available. For whatever reason, and there are many theories, this spring was slower than usual.

That has freed up some inventory that is usually booked for our last minute renters. Just a few examples include a four bedroom, three and a half bath home in Naushop with a week in July and two weeks in August remaining for $4500/week.

The owner recently renovated the bathrooms and the home looks great! There is a three bedroom, three and a half bath home on Millbrook Road available for the rest of July and the end of August for $6500/week. We also have a five bedroom, four and a half bath home on Main Street with lovely outdoor spaces for $12,500/week. The owner of this historic home recognizes the difficulty in getting boat reservations and is willing to do an odd turnover day to accommodate last minute travel plans. For that large gathering a six bedroom, five and a half bath home on Easton Street allows for easy access to downtown and Brant Point beaches for the rest of July at $15,000/week. Contact your favorite Atlantic East agent for info on these or the many other homes that have last minute availability for your Nantucket stay. And don’t forget to secure your favorite rental property for your ideal vacation dates in 2018. Rentals start to book now for next year!

LAND BANK: NEW EXEMPTION We often take for granted the Land Bank and the enormous amount of good that has been done for our island community through their efforts.

Today over one half of the island is preserved as open space by various conservation groups including the Land Bank. Open space provides areas for people to enjoy, helps to maintain habitat for hundreds of species, and helps to protect the island’s aquifer by providing ample unspoiled acreage for rain and snow water recharge — our sole source of drinking water. Some of the more familiar Land Bank properties are Miacomet Golf Course, Gardner Farm, Sanford Farm West, Polpis Harbor and Lily Pond.

The Nantucket Islands Land Bank Fee is a 2% transfer tax on the purchase of real estate on Nantucket, typically paid by the buyer. Since the inception of the program there has been an exemption for first time buyers who meet certain conditions. The exemption was raised in 2016 from $400,000 to $500,000. The first time buyer exemption applies to buyers who have never owned real estate (anywhere) and who will occupy the propertyfor a minimum of five years. The Land Bank places a lien on the property that is released once the conditions have been met.

The Nantucket Land Bank recently adopted a new exemption from its 2% fee to further help buyers who are buying a property subject to affordable housing restrictions on Nantucket. Exemption O applies to those who are purchasing a Nantucket Housing Needs Covenant or Habitat for Humanity property.

We applaud the Land Bank Commission for proactively responding to the current real estate market conditions.

The new exemption went into effect on June 1st. Contact your broker for more information.

Page 4

Well H20 and Mandatory Testing!

In March the Nantucket Board of Health adopted new regulations, Well Testing Regulations Nantucket 2017, requiring that owners of property in nitrogen sensitive areas have all potable (drinking) water wells tested each year during years that end with odd numbers (2017, 2019, 2021, etc.). These areas include the following districts: Nantucket Harbor Watershed, Madaket Harbor Watershed, Hummock Pond Watershed, Miacomet Pond, Sesachacha Pond and Wellhead Protection areas. The testing is for "exceedences of the Massachusetts Maximum Containment Levels (MMCL) for primary drinking water contaminants".

Areas outside of the defined nitrogen sensitive areas (anyone else who has a well for drinking water) shall do the same testing on years that end with even numbers (2018, 2020, 2022, etc.). All potable water testing must be performed by a MADEP certified laboratory in accordance with 310 CMR 42.00 and a certificate displaying the well's MMCL's shall be filed with the Health Department within 30 days of the laboratory analysis.

For more information please contact the Nantucket Health Department at 508.228.7200 or on their web site http://www.nantucket-ma.gov/839/Health-Department.

ENJOY SUMMER, AVOID THE EMERGENCY ROOM Nantucket Cottage Hospital’s Summer Walk-In Care service offers easy and convenient access to medical care for non-life-threatening conditions with no appointment necessary and without a trip to the emergency room. During the busy summer months on Nantucket, their team of board-certified clinicians makes it simple to access care for common conditions and ailments such as tick bites, sunburn, infections, minor falls, respiratory infections and a host of other conditions. Walk-In Care is the place to go this summer in order to avoid potentially longer waits at the emergency room. It is also a good place to see your friends! The clinic is located at the Anderson Building at Nantucket Cottage Hospital at 57 Prospect Street and hours are: Monday to Friday 8 - 5 and Saturday and Sunday 8 - 12 noon. Phone is 866.211.6588.

Nantucket: Total Annual Number of Sales As of 6.30.17 900

800

700

600

500

400

300

200

100

0 Total Number of Sales

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

522

613

776

659

475

399

248

237

364

384

546

506

566

514

534

215

Page 5

Nantucket: Sales as % of List Price and Assessed Value As of 6.30.17

160%

150%

140%

130%

120%

110%

100%

90%

80%

70% Avg Sale as % of List price Avg Sale % of AV

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

90%

90%

94%

93%

91%

93%

93%

90%

79%

82%

84%

88%

90%

91%

90%

2017 90%

121%

151%

135%

135%

152%

130%

114%

99%

95%

106%

89%

81%

139%

141%

103%

118%

Nantucketers Afar Long time member of the Nantucket Rotary Club, Ken Beaugrand, recently spent a week in Geneva, Switzerland as part of an international travel scholarship outreach program. The program, sponsored by the Nantucket Rotary Club, was designed to foster a higher level of understanding of our collective responsibilities as citizens of the world. Eligible were graduates of Nantucket High School who, through their post high school work, had majored in international relations or language. The two week program enabled two Nantucketers to be exposed to 18 different international organizations based in Geneva. Liz Skokan graduated from Mt. Holyoke with a focus on international relations, economics and French and has recently been accepted to graduate school at Johns Hopkins. Gabrielle LaFavre is a graduate of Trinity College where she majored in Human Rights, African studies and French. She recently completed her masters degree at the University of Massachusetts in professional writing. Both young women have also spent time volunteering in Africa. One of the highlights of the trip was a private audience with the Director General of the United Nations. The program also provided an opportunity for cooperation between Rotary Clubs internationally.

Atlantic East N A N T U C K E T R E A L E S TAT E Penny Dey, GRI, ABRM and Heidi Drew, ABR, RSPS, SRS, Principal Brokers Ken Beaugrand; Linda Bellevue, GRI, CBR; Peter DuPont; Alison K. Forsgren, ePro, NAR Green, SRES Mary D. Malavase, ABR, RSPS, TRC, SFR, SRS; Jane Miller, ABR, RSPS; Erikka Perkins, Rental Manager; Meg Ruley, ABR, RSPS Lisa Sherburne, ABR, RSPS; John F. Trudel III, SFR; Melinda Vallett; Christine Whelden, ABR; Geri Walker and Ani Mulcahy, Office Managers

We believe in doing one thing and in doing it well.

82 Easton Street Nantucket MA 02554 t: 508-228-7707

NantucketRealEstate.com Volume XIII, Issue 3, Summer 2017