May Market Insights - Nantucket Real Estate

FISHER’S

NANTUCKET REAL ESTATE

MAY ‘23 REVIEW

KEY MARKET METRICS

Market Insights BY JEN ALLEN 2023

ALL PROPERTY TYPES

% CHANGE YOY

5-YEAR AVG.

93

165

-44% f

156

$324,833

$575,898

-44% f

$441,253

Months on Market

3.1

2.9

7% d

5.1

Sale Price to Last Ask

98%

97%

1d

95%

Active Listings

135

115

17% d

224

Projected Absorption

4.5

2.2

102% d

7.4

New Monthly Contracts

20

27

-26% f

31

Transactions Dollar Volume ($ in 000s)

NANTUCKET REAL ESTATE ACTIVITY THROUGH MAY 2013 - 2023

Dollar Volume

# of Transactions

For the first time in 2023, the Nantucket real estate market surpassed $100 million in monthly sales volume during May. This was led by one of Fisher’s transactions, and the highest sale on record along the island’s south shore, the $27 million sale of 25 Nonantum Avenue. May transactions brought year-to-date figures over $300 million through 91 property sales, a decline of 45 percent for both transaction and dollar volume metrics from 2022. It is the lowest transaction volume for the same period since 2009. While inventory levels had been steadily rising and were 30 percent higher than 2022 levels just one month ago, this gap narrowed to only 20 percent higher in May 2023 versus May 2022. This kept pressure on prices and buyers as seen in the eight properties that sold at 99 percent and up to 139 percent of the last listing price. Interestingly, price adjustments rose, reflecting a potential inconsistency in pricing versus buyer’s perceived value, particularly at the high end of the market.

Here are Fisher’s May Market Insights...

2022

Dollar Volume per Quarter

Q1

Q2YTD

# of Transactions

MONTHLY SALES HIGHLIGHTS

HIGHEST SALE

RESIDENTIAL RESALE

MULTIPLE BID SALE

$26,875,000

$5,100,000

$3,350,000

25 NONANTUM AVENUE MARKETED FOR [84 Days]

20 CLIFF ROAD SOLD FOR $3.87M IN 2018

3 FRANKLIN STREET SOLD $155K OVER ASK

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

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FISHER’S MAY ‘23 REVIEW Market Insights BY JEN ALLEN RESIDENTIAL SALES ACTIVITY

TRANSACTION VOLUME DOWN & MEDIAN VALUE SOFTENS

2023

Transactions Total Sales Dollar Volume

2022

% Change

5 Year Avg.

72

103

-30% f

101

$264,573,043

$462,910,007

-43% f

$332,500,545

Avg. Selling Price

$3,674,626

$4,494,272

-18% f

$3,282,985

Median Selling Price

$2,485,000

$3,100,000

-20% f

$2,302,000

Avg. Months on Market

3.3

3.6

-8% f

5.4

Avg. Price as % of Last Ask

97%

97%

0r

95%

Avg. Price as % of Original Ask

95%

96%

-1 f

92%

Avg. Price as % of Assessed Value

172%

180%

-8 f

151%

• In reviewing residential sales activity by price point, the most significant increase in transaction activity as a percentage of total activity was for single-family home sales between $2 million and $3 million, which rose eight percentage points from one year ago. Sales between $3 million and $4 million held largely steady at 10 percent of transaction volume, while sales between $1 million and $2 million fell by four percentage points from one year ago.

• As mentioned above, the high-end of the market isn’t quite as vibrant as it’s been in the last few years. While the percentage of sales remains largely steady for the highend, or sales between $5 million and $10 million, the ultra-high-end, or sales between $10 million to $20 million slipped by five transactions and approximately $55 million since this time last year. And the mega-high-end, or sales above $20 million is one transaction and $47 million shy compared to one year ago. This isn’t necessarily due to inventory as the number of available properties in these price points held largely steady from 2022 levels.

• Single-family home sales (excluding condos, co-ops & 40B/covenant properties) were down 30 percent through May 31, 2023. This is nearly the same decline the market saw during the same year-to-date period from 2021 and 2022 and is reflective of the continued low inventory and a growing lack of urgency on the part of buyers. Dollar volume posted a more severe year-to-year decline (43 percent) not least due to the decline in transaction volume but also the decline in $10M+ transactions.

• May transactions ranged from a $1.385 million sale of a three-bedroom property to the $26.9 million sale of a two-dwelling, two-lot waterfront property in Surfside. The latter marks the first mega-high-end sale of the year, wherein there were two transactions in this stratosphere last year. There were no sales in the $10M-$20M range in May, and only two so far this year, compared to seven transactions at this point last year • Given the lack of high-end sales to “pull up” the median sales value, the median selling price through May 31, 2023, declined 20 percent to $2.485 million. This doesn’t yet mean there is more affordable inventory as the lowest single-family home available for sale was $1,595,000 for a one-bedroom, in-town property.

RESIDENTIAL SALES ANALYSIS BY PRICE POINT YTD HIGH-END SALES DECLINE

$5M–$10M Transactions

$10M-$20M

Total Sales Volume

Transactions

Total Sales Volume

2018

12

$77,760,000

2

$28,850,000

2019

5

$32,895,000

1

$11,670,000

2020

8

$47,465,500

-

-

2021

21

$142,561,150

2

$26,350,000

>$20M Transactions

Total Sales Volume

2

$48,500,000

2022

18

$111,306,207

6

$78,975,000

2

$73,000,000

2023

14

$87,790,000

2

$23,160,500

1

$26,875,000

PROPERTY INVENTORY & PRICE REDUCTIONS PRICE REDUCTIONS INCREASE IN THE HIGH-END MARKET

• As of May 31, 2023, there were 135 properties (residential, land & commercial) listed for sale and the total months’ supply (how long it would take to sell all listings based on trailing 12-month sales) measured three and a half months. As compared to last year, the number of listed properties is higher for the first time in many years for certain price points, most notably the $2 million to $3 million and properties listed between $4 million to $7 million.

• Through the 31 days ending May 31, 2023, there were price adjustments to 20 properties, a 25 percent decrease from the same period last year. The average price discount from the original list price was approximately 13 percent (excluding one severely mispriced property that is now 65 percent lower than the initial list price). Most notably, the price adjustments were not across every price point as we typically see and were all for properties initially listed for more than $5 million.

2021

2022

2023

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

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