February 2021 Nantucket Real Estate Market Insights

NANTUCKET REAL ESTATE Market Insights BY JEN ALLEN MONTHLY SALES HIGHLIGHTS

HIGHEST SALE

COMMERCIAL SALE

LENDER-OWNED SALE

$7,375,000

$4,000,000

$3,975,000

8 WALBANG AVENUE

53 MAIN STREET MARKETED FOR [343 Days]

FISHER’S REVIEW

The first two months of 2021

14 ORANGE STREET MARKETED FOR [167 Days]

KEY MARKET STATISTICS ALL PROPERTY TYPES

Transactions Dollar Volume ($in 000s)

FY 2021

FY 2020

% CHANGE YOY

5-YEAR AVG.

92

56

64% d

68

$208,119

$144,721

44% d

$147,302

5.7

6.8

-16% f

7.3

showcased a bright start to the year

Avg. Months on Market

and the continuation of the banner real

Sale Price to Last Ask Price

94%

94%

0

93%

estate market that kicked off in 2020.

Active Listings (Feb)

Both January and February monthly

145

269

-46% f

238

Months Supply of Inventory

2.6

7.5

-65% f

11.0

New Contracts (Feb)

46

23

100% d

29

volume surpassed $100 million in sales with a combined total of $208 million through February 28, 2021. This is an impressive 55 percent (#) and 32

NANTUCKET REAL ESTATE ACTIVITY

percent ($) rise in sales figures from

THROUGH FEB 2011–21

the same period in 2020, a period which had yet to reflect the pause in sales that eventually occurred when March. As expected, residential sales represented the lion’s share of activity, but the commercial market had a very impressive start to the year as well.

# of Transactions

more dire news of COVID-19 broke in Dollar Volume

FEB 21

[Private Sale]

Sales volume and contract activity was robust across the board, a trend that could be unsustainable if we don’t see an increase in for-sale inventory. Here are Fisher’s February Market Insights… © 2 0 2 1 F I S H E R R E A L E S TAT E

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

1

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

RESIDENTIAL SALES SUMMARY

SINGLE FAMILY HOME SALES

COMMERCIAL SALES SUMMARY

RECORD SALES KICK OFF 2021

VIBRANT ACTIVITY SUGGESTS A TURNAROUND

2021

Total Transactions Total Sales Dollar Volume Avg. Selling Price Median Selling Price

2020

% Change

5-Year Avg (2017-21)

59

38

55% d

44

$154,330,125

$116,529,000

32% d

$113,161,039

2021

Transactions Total Sales Dollar Volume

$2,615,765

$3,066,553

-15% f

$2,580,040

Avg. Selling Price

$2,100,000

$1,950,000

8% d

$2,035,500

Median Selling Price

5.1

8.1

-36% f

7.9

94%

92%

2d

93%

Avg. Months on Market Avg. Price as % of Last Ask Avg. Price as % of Original Ask Avg. Price as % of Assessed Value

91%

85%

6d

89%

126%

135%

-9f

129%

2020

% Change

5 Year Avg (2017–21)

10

3

233% d

5

$21,187,000

$4,385,000

383% d

$8,938,600

$2,118,700

$1,461,667

45% d

$1,689,973

$2,000,000

$1,750,000

14% d

$1,715,600

8.3

4.1

101% d

6.1

88%

96%

-8 f

94%

Avg. Months on Market Avg. Price as % of Last Ask Avg. Price as % of Original Ask

84%

96%

-12 f

92%

Avg. Price as % of Assessed Value

141%

122%

20 d

130%

Single-family home sales (excluding condos, co-ops & covenant properties) measured 24 transactions totaling $72.3 million in February, a rise of 60 percent and 111 percent respectively.

The significant jump in dollar volume stemmed from continued strength in the upper end of the market. There were four transactions above $5 million, compared to just two at this time one year ago, and there was a significant increase in the percentage of transactions in the $3 million to $4 million price point as compared to both 2020 and the five-year average.

•

It goes without saying that 2020 was a difficult year for many commercial businesses and, as a result, there were fewer commercial transactions last year as compared to prior years. In November 2020, we began to see renewed signs of sales activity but early 2021 could prove to be the turning point for this segment of the local market. Through February 28, 2021, there were 10 commercial transactions totaling $21.2 million. This is more than triple the activity we saw for the same period in 2020 and closer to annual totals for many previous years.

•

Not surprisingly, single-family home sales metrics continued to strengthen. The average marketing time declined 3 months from 2020 and the five-year average, illustrating the continued, rapid pace of the current market. Pricing discounts also narrowed while the median home sale price rose eight percent. Given dwindling inventory amidst continued buyer demand, multiple-bid scenarios seem to be more and more common in this market, which should only continue to buoy pricing metrics and property values.

•

The highest commercial sale was the $4 million transfer of 53 Main Street, a four level, historic building that was formerly home to Rogers & Gray insurance company. January and February transactions also included three separate transactions of three contiguous commercial properties spanning from 18A Sparks Avenue to 26 Sparks Avenue. All properties transferred to the same buyer. We understand a mixed-used development may be planned for this highly visible and easily accessible area. Several other transactions in the downtown and mid-island areas took place. (See our website for more detail on the transactions). As of March 29, 2021, there were just 11 commercial properties listed for sale as compared to the 16 listed one year ago.

FEB 21

•

FORWARD MARKET INDICATORS

HISTORICAL COMPARISON OF CONTRACT ACTIVITY

NANTUCKET PROPERTY INVENTORY LEVELS HISTORICALLY LOW INVENTORY COULD HAMPER SALES

# of Properties

# of Contracts

NEW PURCHASE ACTIVITY OFF TO A BIG START

January

February

February

December

•

After reaching meteoric heights in July, recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) have been steadily declining ever since. For the monthly period ending February 28, 2021, 46 new contracts were signed, down from the 66 reported in December but well above any previous February period. This illustrates the continued demand in the market but also that low inventory levels are putting downward pressure on sales activity.

•

Most of the contracts booked, 28 percent, were for properties last priced between $1 million and $2 million, markedly lower than the 39 percent for this segment in 2020 and dramatically lower than the 50 percent in 2019. Properties last priced between $4 million and $5 million jumped to 11 percent of total contract activity, the biggest percentage increase of any price point from both 2020 activity and from the five-year average. All high-end and ultra-high-end price points saw at least one transaction, somewhat unusual for this early in the year.

January, March - December

•

It seems every suburban home market in America is having a problem – a lack of property inventory. In fact, for the first time in recent history, the number of single-family homes available for sale dropped below 100 properties. This is less than half of the inventory available at this time one year ago and 46 percent lower than the five-year average for the same period. While this is historically a seasonally lean time of the year for Nantucket property inventory, we don’t foresee a material change to this trend though expect more properties will be sold “off-market” through broker-initiated, private sales.

•

As of February 28, 2021, total Nantucket real estate inventory included 145 properties: 90 singlefamily homes, 15 condos/multi-family or co-op properties, 29 land listings and 11 commercial properties.

•

Not one price point segment saw year-over-year growth in the number of properties for sale, which is also a notable change from the last several years. And, starkly, there were just four single-family homes available for sale under $1 million. The other price points to see the biggest year-over-year declines in available inventory were the $2 million to $3 million and $6 million to $8 million price points. One thing is for certain, it’s a pretty remarkable time to be a seller.

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

2

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

SINGLE FAMILY HOME SALES RECORD SALES KICK OFF 2021 2021

Total Transactions

% Change

5-Year Avg (2017-21)

59

38

55% d

44

$154,330,125

$116,529,000

32% d

$113,161,039

$2,615,765

$3,066,553

-15% f

$2,580,040

$2,100,000

$1,950,000

8% d

$2,035,500

5.1

8.1

-36% f

7.9

Avg. Price as % of Last Ask

94%

92%

2d

93%

Avg. Price as % of Original Ask

91%

85%

6d

89%

126%

135%

-9f

129%

Total Sales Dollar Volume Avg. Selling Price Median Selling Price Avg. Months on Market

Avg. Price as % of Assessed Value

FEB 21

2020

•

Single-family home sales (excluding condos, co-ops & covenant properties) measured 24 transactions totaling $72.3 million in February, a rise of 60 percent and 111 percent respectively.

The significant jump in dollar volume stemmed from continued strength in the upper end of the market. There were four transactions above $5 million, compared to just two at this time one year ago, and there was a significant increase in the percentage of transactions in the $3 million to $4 million price point as compared to both 2020 and the five-year average.

•

Not surprisingly, single-family home sales metrics continued to strengthen. The average marketing time declined 3 months from 2020 and the five-year average, illustrating the continued, rapid pace of the current market. Pricing discounts also narrowed while the median home sale price rose eight percent. Given dwindling inventory amidst continued buyer demand, multiple-bid scenarios seem to be more and more common in this market, which should only continue to buoy pricing metrics and property values.

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

3

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

COMMERCIAL SALES SUMMARY VIBRANT ACTIVITY SUGGESTS A TURNAROUND 2021

Transactions

% Change

5 Year Avg (2017–21)

10

3

233% d

5

$21,187,000

$4,385,000

383% d

$8,938,600

$2,118,700

$1,461,667

45% d

$1,689,973

$2,000,000

$1,750,000

14% d

$1,715,600

8.3

4.1

101% d

6.1

Avg. Price as % of Last Ask

88%

96%

-8 f

94%

Avg. Price as % of Original Ask

84%

96%

-12 f

92%

Avg. Price as % of Assessed Value

141%

122%

20 d

130%

Total Sales Dollar Volume Avg. Selling Price Median Selling Price Avg. Months on Market

FEB 21

2020

•

It goes without saying that 2020 was a difficult year for many commercial businesses and, as a result, there were fewer commercial transactions last year as compared to prior years. In November 2020, we began to see renewed signs of sales activity but early 2021 could prove to be the turning point for this segment of the local market. Through February 28, 2021, there were 10 commercial transactions totaling $21.2 million. This is more than triple the activity we saw for the same period in 2020 and closer to annual totals for many previous years.

•

The highest commercial sale was the $4 million transfer of 53 Main Street, a four level, historic building that was formerly home to Rogers & Gray insurance company. January and February transactions also included three separate transactions of three contiguous commercial properties spanning from 18A Sparks Avenue to 26 Sparks Avenue. All properties transferred to the same buyer. We understand a mixed-used development may be planned for this highly visible and easily accessible area. Several other transactions in the downtown and mid-island areas took place. (See our website for more detail on the transactions). As of March 29, 2021, there were just 11 commercial properties listed for sale as compared to the 16 listed one year ago.

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

4

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

HISTORICAL COMPARISON OF CONTRACT ACTIVITY

FEB 21

# of Contracts

NEW PURCHASE ACTIVITY OFF TO A BIG START

January

February

December

•

After reaching meteoric heights in July, recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) have been steadily declining ever since. For the monthly period ending February 28, 2021, 46 new contracts were signed, down from the 66 reported in December but well above any previous February period. This illustrates the continued demand in the market but also that low inventory levels are putting downward pressure on sales activity.

•

Most of the contracts booked, 28 percent, were for properties last priced between $1 million and $2 million, markedly lower than the 39 percent for this segment in 2020 and dramatically lower than the 50 percent in 2019. Properties last priced between $4 million and $5 million jumped to 11 percent of total contract activity, the biggest percentage increase of any price point from both 2020 activity and from the five-year average. All high-end and ultra-high-end price points saw at least one transaction, somewhat unusual for this early in the year.

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

5

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

NANTUCKET PROPERTY INVENTORY LEVELS

FEB 21

# of Properties

HISTORICALLY LOW INVENTORY COULD HAMPER SALES

February

January, March - December

•

It seems every suburban home market in America is having a problem – a lack of property inventory. In fact, for the first time in recent history, the number of single-family homes available for sale dropped below 100 properties. This is less than half of the inventory available at this time one year ago and 46 percent lower than the five-year average for the same period. While this is historically a seasonally lean time of the year for Nantucket property inventory, we don’t foresee a material change to this trend though expect more properties will be sold “off-market” through broker-initiated, private sales.

•

As of February 28, 2021, total Nantucket real estate inventory included 145 properties: 90 singlefamily homes, 15 condos/multi-family or co-op properties, 29 land listings and 11 commercial properties.

•

Not one price point segment saw year-over-year growth in the number of properties for sale, which is also a notable change from the last several years. And, starkly, there were just four single-family homes available for sale under $1 million. The other price points to see the biggest year-over-year declines in available inventory were the $2 million to $3 million and $6 million to $8 million price points. One thing is for certain, it’s a pretty remarkable time to be a seller.

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

6