October Market Insights - Nantucket Real Estate

FISHER’S

NANTUCKET REAL ESTATE

OCT ‘23 REVIEW

KEY MARKET METRICS

Market Insights BY JEN ALLEN 2023

ALL PROPERTY TYPES

% CHANGE YOY

5-YEAR AVG.

247

346

-29% f

416

$984,316

$1,267,884

-22% f

$1,219,457

3

2.4

25% d

4.4

Sale Price to Last Ask

97%

97%

0 r

95%

Active Listings

158

124

27% d

239

Projected Absorption

4

4.4

0% r

6.0

New Monthly Contracts

23

39

-41% f

55

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

NANTUCKET REAL ESTATE ACTIVITY THROUGH OCTOBER 2013 - 2023

Dollar Volume

# of Transactions

Thanks to another solid month of activity in the upper end of the market in October, Nantucket real estate saw its second highest monthly dollar volume so far this year. Monthly sales included 43 transactions totaling $170 million, slightly lower than the previous high-water mark of $199 million set in September. On a cumulative basis for the 10 months ending October 31, 2023, there were 247 property transfers totaling $984 million, a decline of 29 percent and 22 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. Inventory levels continued to rise while new purchase activity was well off previous year’s activity. Here are Fisher’s October Market Insights…

2022

Dollar Volume per Quarter

Q1

Q2

Q3

Q4YTD

# of Transactions

MONTHLY SALES HIGHLIGHTS

HIGHEST RESIDENTIAL SALE

HIGHEST LAND SALE

LONGEST MARKETED PROPERTY

$11,995,000

$10,000,000

$1,475,000

29 ORANGE STREET MARKETED FOR [23 Days]

64 & 66 BAXTER ROAD MARKETED FOR [60 Days]

14 SILVER STREET MARKETED FOR [671 Days]

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

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FISHER’S OCT ‘23 REVIEW Market Insights BY JEN ALLEN SINGLE-FAMILY DATA REVIEW REDUCED VOLUME BUT VIBRANT HIGH END

2023

Transactions Total Sales Dollar Volume

2022

% Change

5 Year Avg.

36

37

-3% f

52

$146,922,000

$173,538,250

-15% f

$204,856,940

Avg. Selling Price

$4,081,167

$4,690,223

-13% f

$3,959,462

Median Selling Price

$3,575,000

$3,600,000

-1% f

$2,973,000

Avg. Months on Market

3.0

1.8

66% d

3.5

Avg. Price as % of Last Ask

96%

97%

-1 f

96%

Avg. Price as % of Original Ask

91%

94%

-3 f

92%

Avg. Price as % of Assessed Value

161%

188%

-27 f

156%

• Although property inventory remained closer to historic lows than more recent highs, inventory stood approximately 27 percent higher than one year ago. As of October 31, 2023, there were 158 properties listed for sale including residential, commercial, and vacant land listings. The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured five months for residential properties, six months for vacant land and just one month for commercial properties.

• Single-family home sales (excluding condos, co-ops & covenant properties) during the month of October measured 36 transactions totaling $147 million.

Although this represents a 3 percent and 15 percent respective decline from October 2022 figures, the dollar volume was the second highest posted so far this year thanks to a handful of higher end transactions. This activity brought the year-to-date total to 185 single-family home sales totaling $837 million through October 31, 2023. This represents the lowest number of homes sold since 2011. As a point of reference, the dollar volume for the 199 homes sold through the same period in 2011 was $326 million.

NANTUCKET PROPERTY INVENTORY

INCREASE IN LISTINGS, PARTICULARLY AT THE HIGH END

• In reviewing single-family homes available properties by price point, every price point saw a modest increase from 2022 levels except for properties listed for less than $1 million, of which there was just one. The largest year-over-year increases in inventory occurred at the upper end of the market, particularly for homes listed for more than $10 million. As I’ve detailed in recent months however, this segment of the market continues to see solid transaction activity.

2021

CONTRACT ACTIVITY

2022

2023

• Whether it was due to limited inventory, current interest rates, a misalignment of pricing to value or some combination of these factors, monthly contract activity was well off prior year’s volumes. Recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) for the monthly period ending October 31, 2023, totaled just 23 properties, down from the 33 reported one year ago and down from 52 contracts in October 2021.

NEW PURCHASE ACTIVITY DWINDLED

• Most of the contracts booked in October, 31 percent, were for properties last priced between $2 million and $3 million, notably higher than the 18 percent for this segment in 2022. New contracts for properties listed between $4 million to $5 million represented the next highest price point for new contracts while contracts for properties priced above $10 million represented 13 percent of new activity.

• Considering preliminary November sales data shows $83 million in recorded sales, the Nantucket market will definitely surpass $1 billion but will likely fall short of the $1.63 billion from 2022 and certainly the $2.3 billion from 2021.

August

September

October

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

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