September Market Insights - Nantucket Real Estate

FISHER’S

NANTUCKET REAL ESTATE

SEPT ‘23 REVIEW

KEY MARKET METRICS

Market Insights BY JEN ALLEN

ALL PROPERTY TYPES

2023

5-YEAR AVG.

295

-31% f

325

$814,206

$1,060,556

-23% f

$995,285

Months on Market

3.1

2.6

19% d

4.6

Sale Price to Last Ask

97%

97%

0 r

95%

Dollar Volume ($ in 000s)

times where it’s a challenge to find

% CHANGE YOY

204

Transactions

For Fisher’s monthly reports, there are

2022

a meaningful summary of the data.

Active Listings

161

154

5% d

254

Other times, as in September, the story

Projected Absorption

6

5.6

7% d

8.4

New Monthly Contracts

36

43

-16% f

65

essentially writes itself and trends start to evolve sufficiently to begin a different narrative. September transactions

NANTUCKET REAL ESTATE ACTIVITY

illustrated that the top end of the

THROUGH SEPTEMBER 2013 - 2023

Nantucket real estate is not only alive and well, it’s still thriving. In a time where most sales metrics are starting to fade

from the rest of the market. It continues

Dollar Volume

the data from the high end stands apart

# of Transactions

compared to the period from 2020-2022,

to set records while the rest of the market posts a relative retreat. Here are Fisher’s September Market Insights…

Dollar Volume per Quarter

Q1

Q2

Q3

# of Transactions

MONTHLY SALES HIGHLIGHTS

HIGHEST SALE

ABOVE-ASK SALE

STEEPEST DISCOUNT

$42,000,000

$9,250,000

$18,000,000

68 & 72 MONOMOY ROAD PRIVATE SALE

64 HULBERT AVENUE SOLD FOR 117% OVER ORIGINAL PRICE

72 POCOMO ROAD SOLD FOR 83% OF ORIGINAL PRICE

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

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FISHER’S SEPT ‘23 REVIEW Market Insights BY JEN ALLEN SINGLE-FAMILY SALES ACTIVITY HIGH END SALES TRENDING HIGHER

2023

Transactions

2022

% Change

5 Year Avg.

149

188

-21% f

224

$690,486,581

$837,366,512

-18% f

$804,596,001

Avg. Selling Price

$4,634,138

$4,454,077

4% d

$3,683,990

Median Selling Price

$3,150,000

$3,317,500

-5% f

$2,716,000

Total Sales Dollar Volume

Avg. Months on Market

3.2

2.7

19% d

4.7

Avg. Price as % of Last Ask

97%

97%

0r

95%

Avg. Price as % of Original Ask

94%

96%

-2 f

93%

Avg. Price as % of Assessed Value

176%

187%

-12 f

156%

• The various definitions for the high-end segment of our market have evolved over time as the price tag of real estate has trended ever higher. For a long time, we referred to the “high-end” as sales above $5 million as this definition was sufficient to summarize the limited number of transactions in this segment. Now, we have the high-end ($5M+), the ultra-high end ($10M+) and the mega-high end ($20M+). And it’s the latter two segments that have been turning heads and making headlines.

• Prior to 2022, the record sale for the highest, contiguous residential sale stood for 12 years. It was set in 2010 with a high-water mark of $27.5 million. Since 2022, there have been four residential sales that have far exceeded that number with the most recent property trading for $42 million. In addition to these record-breaking sales, the ultra-high end of the market, which saw two transactions in 2019, soared to 12 transactions in 2021 and in 2022. And this doesn’t even account for vacant land transfers or the volume of homes that are worth $40 million or more with all the building and investment that has taken place in recent years.

CONTRACT ACTIVITY NEW PURCHASES SLOW BUT MARKETING TIMES STILL SWIFT

• Single-family home sales (excluding condos, co-ops & 40B or covenant properties) totaled 149 transactions through September, down 21 percent one year ago and 33 percent from the five-year average. Cumulative dollar volume declined by 18 percent and measured just shy of $700 million. These aggregate metrics have been on the decline for the better part of 18 months. At first, the decline was largely attributed to constrained inventory; now, it’s a multitude of headwinds that seem to be giving buyers more pause.

• As we look at an overall decline in sales and dollar volume activity, one metric that continues to soar is the average home sale value. We will delve into this more in the next section but the average selling price for a single-family home as of September 30, 2023, was $4.63 million, well above the $3.78 million for the five-year average. This increase has been driven not least by broad property appreciation since 2020, but also by the number of high-end, namely ultra-high end ($10M+), sales that have occurred. The highest end sales seem to be the transactions that are still trending positively in regard to both volume and value.

HIGH END SALES BY PRICE POINT RECORD SETTING VOLUME & VALUES

$5M–$10M Transactions

$10M-$20M

Total Sales Volume

Transactions

Total Sales Volume

$64,560,000

>$20M Transactions

Total Sales Volume

3

$69,500,000

2018

18

$114,097,500

5

2019

18

$123,340,000

2

$30,670,000

2020

40

$255,552,175

3

$44,350,000

2021

41

$288,709,150

12

$160,540,000

2022

40

$258,965,611

12

$155,725,000

2

$73,000,000

2023

34

$217,395,538

8

$98,573,000

3

$107,002,500

• Of the 34 September transactions, 13 went to contract very quickly with the properties registering less than 30 days of marketing time. Another four transactions took place in less than 45 days, illustrating that there is still a sense of urgency for certain property types and price points. Overall, however, the total number of new purchase contracts booked during the month fell to 36, down from 52 contracts in August and down from 43 new contracts during September 2022.

• Of the contracts that were publicly recorded during September, the majority (31%) were for properties last priced between $2 million and $3 million. The next highest segment was for properties between $4 million and $5 million. Not surprisingly, there was also seven contracts for the high-end ($5M+) with two of those above $10 million.

July

August

September

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

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