February Market Insights - Nantucket Real Estate

FISHER’S

NANTUCKET REAL ESTATE

FEB ‘23 REVIEW

KEY MARKET METRICS

Market Insights BY JEN ALLEN

ALL PROPERTY TYPES

2023

% CHANGE YOY

5-YEAR AVG.

28

51

-45% f

55

$90,400

$162,166

-44% f

$140,131

Months on Market

2.4

2.5

-4% f

5.6

Sale Price to Last Ask

94%

95%

-1 f

94%

Active Listings

87

61

43% d

171

Projected Absorption

2.5

1.1

139% d

4.8

New Monthly Contracts

18

20

-10% f

25

Transactions Dollar Volume ($ in 000s)

NANTUCKET REAL ESTATE ACTIVITY THROUGH FEBRUARY 2013 - 2023

Dollar Volume

# of Transactions

The number of Nantucket real estate transactions dropped to single digits in February for the first time in 14 years.

However, unlike 2009, this dearth of activity stemmed largely from a lack of supply meeting buyer demand as evidenced by the multiple offers that took place for properties that appealed to eager buyers. Additionally, new contract activity during the month was just as strong as it’s been the last few years, signaling the market remains on solid ground and may well stay that way if real estate continues to be a haven for investors looking to diversify assets amidst unrest in the financial markets. Here are Fisher’s February Market Insights...

2022

YTD Dollar Volume

# of Transactions

MONTHLY SALES HIGHLIGHTS

HIGHEST RESIDENTIAL SALE

$3,800,000

(+ construction contract)

79 POLPIS ROAD PRIVATE SALE

MULTIPLE BID SALE

LONGEST MARKETED SALE

$3,525,000

$2,350,000

2 HIAWASSE LANE MARKETED FOR [3 Days]

163 ORANGE STREET MARKETED FOR [286 Days]

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

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FISHER’S FEBRUARY ‘23 REVIEW Market Insights BY JEN ALLEN PROPERTY SALES BY PRICE POINT CONSISTENT DEMAND DESPITE DECLINE IN SALES • Transaction volume across all property types was significantly lower than in previous years during February. Sales by price point thereby dropped in every pricing category except for sales above $10 million, which saw one more transaction than in 2022 for the same period.

<$1M

$1M-$2M

$2M-$4M

$4M-$7M

$7M-$10M

$10M+

• On a percentage of sales basis, sales between $2 million and $3 million saw the most significant increase during this short timeframe. Time will tell if this trend continues, but this price point tends to see the highest concentration of sales in any given year so 2023 is off to a consistent start. The recent sale of 2 Hiawasse Lane illustrates just how strong demand continues to be as multiple offers resulted in a sale price $275,000 above the list price.

RESIDENTIAL SALES ACTIVITY

2023

STEEP DECLINE IN TRANSACTION VOLUME

Total Transactions

• Single-family home sales (excluding condos, co-ops, multi-family & covenant properties) saw a dramatic decline during February, tallying just six transactions totaling $14.5 million. This is the lowest number of monthly transactions posted during any year since 2009. Conditions are currently quite different as this decline in activity stemmed largely from the lack of home inventory meeting buyer demand.

Total Sales Dollar Volume

2022

% Change

5-Year Avg.

6

12

-50% f

14

$14,500,000

$52,951,667

-73% f

$38,552,733

Avg. Selling Price

$2,416,667

$4,412,639

-45% f

$2,765,991

Median Selling Price

$2,925,000

$4,500,000

-35% f

$2,500,000

Avg. Months on Market

• The highest sale during the month was the $3.8 million sale of 79 Polpis Road, which is artificially low as there was a separate, private construction contract for the dwelling which reportedly totaled an all-in price of $8 million.

0.1

2.6

-97% f

4.3

Avg. Price as % of Last Ask

104%

95%

9d

96%

Avg. Price as % of Original Ask

104%

96%

8d

94%

• Monthly sales metrics remained solid with the average marketing time and sales discounts stronger than they were one year ago.

Avg. Price as % of Assessed Value

153%

172%

-19 f

134%

CONTRACT ACTIVITY NEW PURCHASES REBOUNDED • After a dip in monthly contract activity in January, February’s recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) rallied to 18 newly contracted properties, right in line with monthly activity over the last few years.

• Of these recorded contracts, four were for properties last listed above $5 million, signaling a continued strength in the upper end of the market.

• This new activity suggests we should see a modest bump in transaction activity as we head into the spring market.

January

February

SFH INVENTORY BY PRICE POINT MODEST GROWTH ACROSS THE BOARD • Although property inventory remained at historic lows, February represented the second month of the year with a slight increase from 2022 levels. As of February 28, 2023, there were just 87 properties listed for sale including residential, commercial, and vacant land listings. By isolating single-family homes for sale by price point, nearly every price point saw an incremental increase in listed properties from 2022.

• The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured two and a half months, an increase from 1.1 months at this time last year.

2021

2022

2023

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

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