November Market Insights - Nantucket Real Estate

FISHER’S

NANTUCKET REAL ESTATE

NOV ‘23 REVIEW

KEY MARKET METRICS

Market Insights BY JEN ALLEN 2023

ALL PROPERTY TYPES

% CHANGE YOY

5-YEAR AVG.

271

390

-31% f

444

$1,076,203

$1,460,981

-26% f

$1,400,072

3

2.8

7% d

4.7

Sale Price to Last Ask

96%

97%

-1 f

95%

Active Listings

156

118

32% d

208

Projected Absorption

6

3.1

98% d

7.0

New Monthly Contracts

20

18

11% d

38

Transactions Dollar Volume ($ in 000s) Months on Market

NANTUCKET REAL ESTATE ACTIVITY THROUGH NOVEMBER 2013 - 2023

Dollar Volume

# of Transactions

After a very healthy September and October, November sales activity took a noticeable dip. Monthly sales included just 24 transactions compared to the five-year average of 39, while dollar volume dropped to nearly half of what we typically see this time of year. On a cumulative basis for the 11 months ending November 30, 2023, there were 271 property transfers totaling $1.076 billion, a decline of 31 percent and 26 percent from 2022. Though single-family home sales were the lowest they’ve been since 2011, the value of the units sold, particularly at the high-end, contributed handsomely to year-to-date totals and the average home sale value. Here are Fisher’s November Market Insights…

2022

Dollar Volume per Quarter

Q1

Q2

Q3

Q4YTD

# of Transactions

MONTHLY SALES HIGHLIGHTS

HIGHEST RESIDENTIAL SALE

HIGHEST LAND SALE

$19,200,000

$2,750,000

$9,542,000

88 POCOMO ROAD MARKETED FOR [78 Days]

151 SURFSIDE ROAD MARKETED FOR [1 Day]

26 MONOMOY ROAD MARKETED FOR [386 Days]

LONGEST MARKETED PROPERTY

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

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FISHER’S NOV ‘23 REVIEW Market Insights BY JEN ALLEN RESIDENTIAL SALES ANALYSIS REDUCED VOLUME BUT VIBRANT HIGH END

2023

Transactions Total Sales Dollar Volume

2022

% Change

5 Year Avg.

201

259

-22% f

315

$914,674,181

$1,172,237,262

-22% f

$1,147,524,086

Avg. Selling Price

$4,550,618

$4,526,013

1% d

$3,726,810

Median Selling Price

$3,343,000

$3,250,000

3% d

$2,764,620

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

3.1

3.1

0r

4.7

97%

97%

0r

95%

Avg. Price as % of Original Ask

93%

95%

-2 f

92%

Avg. Price as % of Assessed Value

176%

187%

-11 f

156%

• Single-family home sales (excluding condos, co-ops & covenant properties) during the month of November measured 16 transactions totaling $72.3 million. This represents a 53 percent and 52 percent respective decline from November 2022 figures, and by far the least amount of volume in November since 2010. This activity brought the year-to-date total to 271 single-family home sales totaling $1.076 billion through November 30, 2023, a year-to-date decline of 22 percent for both metrics.

• The highest sale of the month was the waterfront sale of 88 Pocomo Road. The house was under construction (speculative build) at the time of sale and the buyer is reportedly making significant changes. Coming on the heels of the $18 million sale of 72 Pocomo Road (where we understand the existing dwellings will be entirely scrapped), this sets a new, and significantly higher basis for waterfront land in the area.

• Another little insight from November’s home sales is the resale of 33 Vestal Street for $4.565 million after selling for $3M in August of 2020. This reflects a 14 percent annualized return, not too far from a resale reported back in August for a 15 percent annualized return for a similar period. Another sale at 10 Lyon Street reflected a 13 percent annualized return from 2021-2023.

SALES BY PRICE POINT TREND

• While overall transaction volume for single-family homes is down precipitously from previous years, the average home sale price remained elevated at $4.55 million compared to the five-year average of $3.73 million through November 30, 2023.

Property values continued to be buoyed by limited supply and strong demand, which has eliminated availability of homes for sale under $1 million (there were none listed for sale in November). Additionally, higher-end property sales still represent a greater percentage of the overall total as compared to the five-year average.

• This chart illustrates the significant shift in sales by price point over the last five years where homes under $2M (aqua and darker grey shades) have shrunk from representing 60 percent of transaction volume in 2019 to 29 percent thus far in 2023.

Meanwhile the percentage of sales above $5M (light blue and dark green) have represented a larger percentage of sales, 13 percent in 2019 and 19 percent thus far in 2023.

PROPERTY INVENTORY INVENTORY LEVELS STILL LOW BUT RISING

VOLUME DOWN BUT VALUES REMAIN ELEVATED

<$1M

$1M-$2M

$2M-$4M

$4M-$7M

$7M-$10M

$10M+

• Although still historically low, Nantucket property inventory has been steadily increasing throughout the calendar year. As of November 30, 2023, there were just 156 properties listed for sale including residential (130), commercial (3) and vacant land (23) listings. The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured six months, double the length of time it was one year ago. Single-family home inventory has been steadily above 2021 & 2022 levels since August.

• An increasing number of sellers reduced the list price of their properties in November. Through the 30 days ending November 30, 2023, there were price adjustments to 18 properties, a 64 percent increase from the same period last year. The average price discount from the original list price was approximately 11 percent. The price adjustments were across nearly every price point and were not concentrated to any particular segment.

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

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