Great Point Properties August Market Report

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AUGUST MARKET REPORT

GREAT POINT PROPERTIES 1

AUGUST MARKET REPORT NANTUCKET’S REAL ESTATE MARKET HAD ANOTHER UPTICK IN YEAR-OVER-YEAR HOUSE SALES WITH 22 SALES IN AUGUST COMPARED TO 13 FOR AUGUST 2022.

Yet, with just 145 houses sold as of August 31, we still have to return to 2010 to find a year with similar total house sales.

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House sales transactions and dollar volume are off 25% from last August 31.

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Land sales are similarly unremarkable with just 28 closings through August 31, off 62% from August 31, 2022. Land dollar volume is off 50% from last year.

YEAR TO DATE SALES AS OF AUGUST 31

HOUSE SALES AS OF AUGUST 31

The inventory of homes for sale (house sales command nearly 80% of all Nantucket real estate transactions and dollar volume) remains the defining characteristic of the post-pandemic Nantucket real estate market. For the eight months of 2023, the inventory of houses for sale is just one-third of the five-year average prior to the pandemic (2015-2019).

This may be the result of our peculiar market where high interest rates have dampened an owner's desire to sell. This has some rationale as the 30-year mortgage rate is hovering above 7%. On August 31, 2021, the rate was below 3%. This represents a 150% increase in borrowing costs in just two years.

Usually, this would impact demand. Assuming many owners are sitting on long-term fixed mortgages around 3%, it seems reasonable to think they would be less than motivated to sell their home and lose that very attractive loan rate.

GREAT POINT PROPERTIES 2

AUGUST MARKET REPORT AVAILABLE HOMES FOR SALE

THE CURRENT MARKET AT A GLANCE

$6M

AVERAGE ASKING PRICE OF

119

AVERAGE DAYS ON MARKET

44

AVAILABLE HOMES

OF AVAILABLE PROPERTIES

PENDING SALES

65

AVERAGE DAYS ON MARKET

135

OF PENDING PROPERTIES

HOMES FOR SALE

NUMBER OF

SINGLE-FAMILY

GREAT POINT PROPERTIES 3

GPP FEATURED LISTING 31 WASHAMAN ROAD | $2,950,000

AUGUST PHOTO OF THE MONTH

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GREAT POINT PROPERTIES 4