October Market Insights - Nantucket Real Estate

FISHER’S

NANTUCKET REAL ESTATE

OCT ‘24 REVIEW

KEY MARKET METRICS

Market Insights BY JEN ALLEN 2024

ALL PROPERTY TYPES

% CHANGE YOY

5-YEAR AVG.

251

247

2% d

369

$1,092,236

$984,316

11% d

$1,216,618

Months on Market

3.3

3

9% d

4.6

Sale Price to Last Ask

95%

97%

-2 f

95%

Active Listings

198

124

60% d

215

Projected Absorption

8

4

82% d

6.0

New Monthly Contracts

47

23

104% d

55

Transactions Dollar Volume ($ in 000s)

NANTUCKET REAL ESTATE ACTIVITY THROUGH SEPTEMBER 2014 - 2024

Dollar Volume

# of Transactions

Thanks to another month of sales activity that exceeded $200 million, Nantucket real estate not only saw its highest monthly dollar volume of the year, but it also crossed the $1 billion threshold for the fifth consecutive year. Monthly sales included 56 transactions totaling $238 million, the highest monthly sales volume for any month since December of 2021.

On a cumulative basis for the 10 months ending October 31, 2024, there were 251 property transfers totaling $1.096 billion, an increase of two percent and 11 percent from 2023. Due to continued strength in the upper end of the market, the median home sale price skyrocketed once again, while inventory levels continued to rise.

The market showed an uptick in contract activity and is positioned to approach $1.4 billion by year’s end based on current pipeline sales. Here are Fisher’s October Market Insights…

2023

Dollar Volume per Quarter

Q1

Q2

Q3

Q4YTD

# of Transactions

MONTHLY SALES HIGHLIGHTS

HIGHEST RESIDENTIAL SALE

NOTABLE RESALE

LONGEST MARKETED PROPERTY

$13,375,000

$9,770,000

$6,200,000

23 MOREY LANE MARKETED FOR [26 Days]

14 & 16 COFFIN STREET SOLD FOR $11.9M IN 2022

3 SKYLINE DRIVE (SPEC) MARKETED FOR [487 Days]

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

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FISHER’S OCT ‘24 REVIEW Market Insights BY JEN ALLEN RESIDENTIAL SALES ANALYSIS INCREASE IN MONTHLY SALES ACTIVITY

2024

Transactions Total Sales Dollar Volume

2023

% Change

5 Year Avg.

251

247

2% d

369

$1,096,236,150

$984,312,581

11% d

$1,216,618,610

Avg. Selling Price

$4,367,475

$3,985,071

10% d

$3,415,233

Median Selling Price

$3,400,000

$2,800,000

21% d

$2,432,458

Avg. Months on Market

3.9

3.0

32 d

4.3

Avg. Price as % of Last Ask

95%

96%

-1 f

95%

Avg. Price as % of Original Ask

92%

92%

0r

92%

Avg. Price as % of Assessed Value

146%

186%

-39 f

155%

• October Single-family home sales (excluding condos, co-ops & covenant properties) measured 48 transactions totaling $230 million. This is 33 percent higher on a transaction basis and 57 percent higher on a dollar volume basis than one year ago. The increase in transaction volume, particularly at the higher end where there were 17 home sales above $5 million compared to 10 one year ago, contributed to the notable increase in the YOY dollar volume. This activity brought the year-to-date transaction total to 200 single-family home sales totaling $978 million through October 31, 2024. The five-year average for this same period is 264 homes totaling $1 billion.

• Sales metrics pointed to a 24 percent increase in the median home sale value, a discount of approximately five percent from the last asking price and an average sale value of 147 percent higher than the town’s assessed value. This latter metric saw the most notable YOY change given the islandwide property revaluation in FY 2024, where property values increased by approximately 18 percent. This narrowed the respective sales discount relative to what we saw in 2023.

SALES BY PRICE POINT & PROPERTY INVENTORY UPWARD SHIFT DESPITE INCREASING INVENTORY

• 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 $4 million and $5 million, which rose 7 percentage points from one year ago. Sales between $5 million and $6 million increased to 9 percent of total transaction volume, while sales between $10 million to $20 million rose to 7 percent of all activity.

Historically, home sales between $1 million and $2 million represented the highest percentage of total activity but this segment fell nearly 50 percent from 2020 and measured just 14 percent of all sales.

• What this chart so clearly illustrates is the dramatic decline in total transaction activity and the ever upward shift of home sale prices, even amidst an environment of increasing inventory (since 2021). In 2021, there were 114 properties on the market as of October 31st and there were 389 home transactions through the period. In 2024, there were 198 properties on the market but just 200 home transactions through the same period.

CONTRACT ACTIVITY

Number of Contracts

STRONG NEW MONTHLY PURCHASE ACTIVITY

Number of Records <$1M

$1M-$2M

$2M-$4M

$4M-$7M

$7M-$10M

$10M+

• Not only was October a robust month for sales activity, but the market also saw an increase of new purchases. Recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) for the monthly period ending October 31, 2024, totaled 47 properties, nearly double what was reported and the highest monthly amount for this time since 2021.

• Most of the contracts booked in October, 28 percent, were for properties last priced between $2 million and $3 million. Perhaps surprisingly, the next price point on a percentage basis was for properties priced above $10 million.

• Considering preliminary November sales data shows $275 million in estimated pipeline sales, the 2024 Nantucket market will surpass 2023 results but will likely fall short of the $1.63 billion from 2022.

August

September

October

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

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