2024 Mid-Year Market Report

2024

N AN TU C K ET REAL ESTATE M ID -YEAR U PDATE

| 1 REAL ESTATE MARKET

Welcome to

Nantucket Great Point Properties is one of the leading real estate offices on island. With Iocations in Town and Sconset, we are here to help folks navigate the sales and rental market with confidence.

And to help you Find Your Nantucket.

TEA M BILL LIDDLE

L I Z F I N L AY

K AT I E S E H O L M

GREG MCKECHNIE

JIM GARRELS

C A RY T U R N E R

EDWARD SANFORD

D A W N H I L L H O L D G AT E

ETHAN ULMER

BARBARA ANN JOYCE

DEBBIE WILLETT

LAURA BELAIR

DENISE LABOMBARD

NICOLE BOUSQUET

M I C H E L E L I N D ST E D T

CAROLINE CURNOW

AMBER CANTELLA

SUSAN LISTER LOCKE

L I LY M A C D O N A L D

ERIN CARSON

NICHOLE MARKS

LIZ MCCUSKER

BERNIE COFFIN

SARAH MANEIKIS

SAMANTHA PEBLEY

CAROL COFFIN

PA U L A M C A U L E Y

SHANE RILEY

ALEXA COLEMAN

S A M PA R S O N S

A L LY U L M E R

DEBBI DEELEY CULBERTSON

STUART REID

TRACY CULLINANE

BOBBY SABELHAUS

2 | GREAT POINT PROPERTIES

2023 Real Estate MARKET SNAPSHOT

GPP

24%

$1.7B $1.63B

3 9 O THE R O FFICES

76%

$1.2 B

2 0 2 3 T O TA L T R A N S A C T I O N V O L U M E GPP MARKET SHARE

GPP

22% 2023

2022

5 Y R . AV G .

T O TA L I S L A N D D O L L A R V O L U M E I N B I L L I O N S

3 9 O THE R O FFICES

78%

2 0 2 3 T O TA L D O L L A R V O L U M E GPP MARKET SHARE

400 300 200

400

100

300

0

2015-19 AVG 2023

GPP

14%

200 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 100 225.8 266.4 301.4 351.2 376.2 375.2 372.2 343 317.8 257.6 221.8 65 77 96 111 106 118 105 138 134 129 104 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2015-19 AVG 221 221.8 225.8 266.4 301.4 351.2 376.2 375.2 372.2 343

Jan 221 65

2023

65

65

77

96

111

106

118

105

138

134

Nov Dec 317.8 257.6 129 104

ALL O THE R RE NTA L O FFI CE S

86%

H O U S E S L I S T E D F O R S A L E AT M O N T H ’ S E N D 2 0 2 3 N A N T U C K E T R E N TA L MARKET - GPP SHARE

| 3 REAL ESTATE MARKET

2024 Year-to-Date Sales $455,041,215 ON 106 TRANSACTIONS

H O M E SA L E S: $ 4 0 2 M O N 9 0 TR ANSACTI O NS

$

4.5M 93

$

26M

$

3.2M

AVERAGE SALE PRICE

AVERAGE DAYS ON MARKET

HIGHEST SALE PRICE

MEDIAN SALES PRICE

COMPARED TO 2023: $4M

COMPARED TO 2023: 106

COMPARED TO 2023: $42M

COMPARED TO 2023: $2.9M

L A N D SA L E S: $ 4 4 .3 M O N 1 3 TR ANSACTI O NS

$

3.4M 79

$

12M

$

2.8M

AVERAGE SALE PRICE

AVERAGE DAYS ON MARKET

HIGHEST SALE PRICE

MEDIAN SALES PRICE

COMPARED TO 2023: $2.5M

COMPARED TO 2023: 65

COMPARED TO 2023: $10M

COMPARED TO 2023: $1.8M

C O M M E R C I A L SA L E S: $ 9 .2 3 M O N 3 TR ANSACTI O NS

$

3M

4

$

5.2M

$

2.6M

AVERAGE SALE PRICE

AVERAGE DAYS ON MARKET

HIGHEST SALE PRICE

MEDIAN SALES PRICE

COMPARED TO 2023: $1.85M

COMPARED TO 2023: 151

COMPARED TO 2023: $3M

COMPARED TO 2023: $2M

4 | GREAT POINT PROPERTIES

2024 Year-to-Date Sales A FEW OF GPP’S RECENT TRANSACTIONS

4 YORK STREET, TOWN Asking Price: $2,450,000

122 WAUWINET ROAD, WAUWINET Asking Price: $4,875,000

3A FIELD AVENUE, SURFSIDE Asking Price: $1,875,000

Selling Price: $2,175,000 Days on Market: 176

Selling Price: $5,600,000 Days on Market: 18

Selling Price: $1,812,500 Days on Market: 113

67 SQUAM ROAD, SQUAM

6 KELLEY ROAD, POLPIS

10A DELANEY ROAD, CLIFF

Asking Price: $12,350,000 Selling Price: $10,700,000 Days on Market: 332

Asking Price: $2,495,000 Selling Price: $2,200,000 Days on Market: 120

Asking Price: $6,300,000 Selling Price: $5,800,000 Days on Market: 116

45 WEST CHESTER STREET, TOWN Asking Price: $3,200,000 Selling Price: $3,200,000 Days on Market: 53

42 SHIMMO POND ROAD, SHIMMO Asking Price: $28,000,000 Selling Price: $24,000,000 Days on Market: 54

21 PINE STREET, TOWN Asking Price: $4,135,000 Selling Price: $3,725,000 Days on Market: 90

| 5 REAL ESTATE MARKET

Highlights from the 2024 Mid-Year Market Analysis We have hit mid-year 2024, and our island real estate market remains robust. The previous three years have been record-breaking, and while we are starting to see some small cracks in certain segments of our market, other areas have seemingly strengthened. 2024 is on track to be another year with over one billion dollars, which would make it our 5th largest year in history for dollar volume on an island that measures 14 by 3.5 miles with over 50% conservation land.

The story so far this year has been the difference between the under $3M and over $10M market. They contrast like we have not seen in recent memory. Interest rates have remained north of 6.5% for over nine months, the highest we have seen since 2008. This sustained increase has heightened the cost of debt servicing, pricing many would-be buyers out of the market. Generally, most deals we see with financing are $3M and under, and the lower number of transactions in this segment this year reflects that. Year-to-date, we have seen 42 transactions under $3M, 58% lower than our 4-year average of 101. On the contrary, there has been a record number of sales over $10M this year. Significant wealth accumulation over the past ten years has been fueling the upper end of market activity. So far in 2024, we have seen $117.7M in dollar volume generated from sales over $10M. This is up nearly 75% compared to our four-year average of $67.3M. The first half of 2024 has brought with it an influx of new inventory and an uptick in price reductions. In recent years, we have been in a low inventory environment. While we are still not back to pre-pandemic levels, it has been nice to see inventory build year to year.

HOUSES FOR SALE AS OF JUNE 30

300 250

280

200 189

150

143

100

122

106

50 0

2020

2021

2022

2023

2024

Additionally, we have seen more price reductions in the last couple of months than in prior years.

PRICE REDUCTIONS AS OF JUNE 30

120 100 80

108 81

60

58

40

46

57

20 0

2020

2021

2022

2023

2024

Year-to-date, there have been 108 price reductions compared to 57 over the same timeframe last year. It will be interesting to see how this uptick in new inventory, combined with macroeconomic conditions, interest rates, and inflation, affects average days on market and asking prices as we progress through the summer.

Currently, our average days on market is 93 compared to 106 for the same timeframe in 2023. While new inventory has been a welcomed change, the average single-family home sales price for 2024 is currently $4,461,225 compared to $3,777,774 over the same timeframe last year. The average asking price is currently $6,723,366 compared to $6,557,000 last year.

Overall, our market remains active. Competitively priced homes in desirable locations continue to trade hands quickly. *Market data and analysis provided by GPP agent Ethan Ulmer*

6 | GREAT POINT PROPERTIES

GPP Featured Listings

124 Tom Nevers Road

7 Pleasant Street

TOM NEVERS $6,150,000

TOWN $14,490,000

14 & 16 Coffin Street

1 & 5 Ocean Avenue, 6 Grand Avenue

SCONSET $11,750,000

SCONSET $29,500,000

10 Center Street

5 Maxey Pond Road

SCONSET $1,795,000

| 7 WEST OF TOWN REAL ESTATE MARKET ANNUAL REPORT 2022 $6,395,000

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An Update on the Nantucket Vacation Rental Market The Nantucket rental market experienced a notable change in seasonal dynamics during the pandemic. Traditionally confined to July and August, the “season” expanded to encompass May through Christmas. As the world went back to work and normalcy returned, booking patterns reverted to their usual trend. There’s been much talk of vacancies lately, but upon closer inspection of homeowners’ calendars, it’s clear that it’s the shoulder season—once quickly embraced by rental owners—that now sits vacant.

This isn’t indicative of Nantucket losing its allure or a reaction to rising rental rates. Instead, it reflects a return to normalcy on an island 24 miles out to sea.

“

“

Our rental bookings have decreased by 1.8%, though the associated dollar volume has increased from last year.

Thus, while many homes are currently vacant, a retrospective look is necessary to determine if these vacancies occur during peak season. If so, discussions on pricing or property issues may be warranted. If not, it’s a matter of homeowners readjusting to this leveling.

Adjusting pricing strategies for shoulder season rentals is crucial. Previously, aggressive flat rates were common, but with the return to “normal,” homeowners are advised to adopt seasonal pricing strategies that account for lower demand during these periods.

The high-end rental market on Nantucket requires adaptability, especially in times of increased inventory. Adapting pricing strategies, especially during off-peak periods, will be essential for homeowners to navigate this landscape effectively and attract renters.

WHERE OUR RENTERS ARE COMING FROM (TOP 10 STATES)

% % % % % % % % % %

8 | GREAT POINT PROPERTIES

GPP Featured Rentals

BRANT POINT

CISCO

CLIFF

12 GALEN AVENUE $10,000 - $22,000 Per Week

25 HIGH BRUSH PATH $25,000 - $35,000 Per Week

67 CLIFF ROAD $7,000 - $11,500 Per Week

BRANT POINT

MIACOMET

SCONSET

3 WALSH STREET

82.5 BAXTER ROAD

$10,000 - $14,500 Per Week

11 MIZZENMAST ROAD $9,000 - $13,000 Per Week

CLIFF

TOWN

WAUWINET

2 CLIFF ROAD $8,750 - $18,000 Per Week

15A VESTAL STREET $7,000 - $8,500 Per Week

145 WAUWINET ROAD $12,500 - $19,500 Per Week

$6,300 - $7,800 Per Week

| 9 REAL ESTATE MARKET

Helpful Things to Know IN THE NANTUCKET REAL ESTATE WORLD Zoning: Nantucket has twenty different zoning areas across the island. The

Nantucket Tax Rate and Budget: The island’s annual

zoning map is a patchwork indicating the allowable density and use. The island’s zoning varies from industrial to protective moorlands management. Lot sizes can vary from minimums of 5,000 square feet to 10 acres. Along with lot size, allowable ground cover ratios and setbacks are defined within our zoning. Many properties were created and built before Nantucket’s zoning laws and if they are not conforming to the regulations, they are considered pre-existing and non-conforming.

operating budget is about $131,000,000, plus additional capital expenses, which bring the total budget close to $150,000,000. Like most towns, the main expenses are safety and education. The majority of tax revenue comes from property taxes. The current rate is $3.13 per $1,000. It is worth noting that in 2023, $13,200,000, nearly ten percent of the island tax revenue, was generated from room occupancy taxes that include taxes paid by short-term rental homeowners and lodging establishments.

Water and Waste: The island is fortunate to have an aquifer below

Short-Term Rental Regulations: The Nantucket

its surface. The town water, managed by the Wannacomet Water, has wells ranging from 75’ to 150’ in depth that draw on the aquifer and distribute it to the town’s water distribution system. More rural areas have private wells. As for waste, the more densely populated areas of the island, like Sconset Village, Nantucket Town, and Mid-Island, have access to connect to the Town’s sewer system. The sewer is pumped to a waste treatment plant on the South Shore. Less densely populated areas or outlying areas do not have town sewers, and private septic systems serve homes. Several sensitive water protection zones require more advanced systems. As a general rule of thumb, a more environmentally sensitive system will be required if a property is in proximity to the Harbor, Hither Creek, or freshwater ponds.

government and voters have struggled with short-term rentals and proposed regulations. The island has a history of homes being rented weekly, but its popularity, combined with the demand for vacation home rentals, has culminated in a heated debate over the best practice for the island. Four years of annual town meeting debates, along with a court ruling, have yet to clarify the future direction of STRs, but it is reasonable to assume that there will be regulatory changes in the coming years.

Historic District Commission: The Historic District Commission, commonly referred to as the HDC, is the island’s architectural review board. Exterior changes to any building require approval from this board. The board consists of five elected members with three alternate members. The public meetings are conducted weekly, and the applications can vary from a front door paint change request to the approval of a harborfront estate. Any project requiring a building permit that would involve exterior alteration would first require approval from the Historic District Commission. The HDC was established to maintain and preserve the island’s amazing collection of historic homes while providing a design context for new construction. Building with Nantucket in Mind is a terrific book that provides context and illustration for designs considered appropriate on Nantucket.

Nantucket Conservation Commission: The Conservation Commission, often called ConCom, is a regulatory board consisting of seven appointed members and an administrative staff that monitors and safeguards the island’s water resources. Many island properties are subject to wetland regulations.

As a general rule, any kind of land alteration/construction within 100’ of an identified wetland is subject to the Conservation Commission. With permission and conditions, structures can be built up to 75 feet of a wetland edge. With permission and conditions, the landscape can be altered up to 25 feet of a wetland edge. Lands within 25 feet of a wetland cannot be altered. These regulations may be changing, and it is important to seek expert advice from a licensed surveyor for any site with wetlands.

General: Nantucket is nearly 30,000 acres, or 47 square miles, in size, and its population varies from around 14,500 in the sleepy winter months to upwards of 80,000 in the peak of summer. Nearly 12,500 houses are spread across the island and powered by electricity from an undersea cable from Cape Cod. The island has one hospital and one school system bolstered by two popular private schools serving pre-K through 8th grade. Nantucket is a town and a county. The island’s elected body is the Selectboard, consisting of five elected volunteers. The island’s legislative body is an annual town meeting. These two bodies are administered by a town manager.

10 | GREAT POINT PROPERTIES

Conservation: Nantucket is closing in on nearly 50% of the island’s land under conservation or protection. The largest steward of conservation land, with 9,000 acres in protection, is the Nantucket Conservation Foundation. Several of their popular properties include Sanford Farm, Squam Farm, the Middle Moors, and Tupancy Links.

The Nantucket Island Land Bank is the second-largest conservation group. It continues to acquire land for public benefit through revenue generated by a two percent transfer fee paid on all transactions by buyers. In total, nine very active conservation organizations contribute to keeping portions of the island’s landscape open. Check out the Coast to Coast walking trail network if you have an interest in enjoying the amazing collection of open lands.

Beach Access: The island is unique, with abundant access to its beaches. Everything from popular south shore beaches like Cisco and Surfside to calmwater beaches along the North Shore in Dionis or near the Jetties all have parking and access. Though our more popular beach destinations tend to be public, many are private. There has been a long culture of property owners sharing their beaches with the public. As guests, we are encouraged to stay away from the fragile dunes, leave only our footprints, and refrain from driving on the beach.

Insurance: Obtaining homeowner coverage for a second home or investment property limits choices, especially when the home has a high replacement value or is considered to be in a higher-risk location. The island has a good selection of insurance companies that can advise on the options available. Some seasonal residents may use an off-island relationship and bundle their Nantucket home with other insured properties.

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O F F I CE S 1 NO RTH BEA CH ST R EET N A NTUCKET, MA 02554 5 08.228.2266 6 M A I N S TREET SI A S CO NS ET, MA 02564 5 08.257.6335

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| 11 REAL ESTATE MARKET

12 | GREAT POINT PROPERTIES