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N A N T U C K E T
A U T U M N As is often the case, autumn on Nantucket arrived suddenly with a series of tropical storms and nor’easters. Some of our favorite things happen in the fall such as the Cranberry Harvest and Arts Festivals, the opening of scallop season, Fall Restaurant Week, the Halloween Parade and the annual Turkey Plunge (we do not partake in this but do sponsor it). There seem to be more cultural events this year geared towards folks that live on island all year long. We highly recommend the Nantucket Shorts films which, if you missed it at the Dreamland, can be streamed on our local TV station Channel 18. Nantucket’s version of fall foliage, the moors, are at their height of beautiful color right now with purples, reds and oranges. Most restaurants are still open and it is much easier to get around the island now than it was during the height of the summer. If you have not been lucky enough to experience fall on Nantucket it is definitely worth a visit! The real estate market continues to perform extremely well with the most robust 3rd quarter ever with 154 sales for $364,153,000, up 25% in dollar volume over 2016. This is partially due to the continuing improvements in the economy but also due to a number of very large sales over $10 million that closed during the last quarter. For some perspective - there have been only 3 years ever that total real estate sales on Nantucket topped $1 billion. Based on the numbers so far in 2017 we believe that 2017 will be the fourth year to exceed $1 billion in real estate sales. Although the number of transactions, year to date, are down 3%, the dollars represented by these sales are up 8% over last year at this time. This confirms what we are seeing on the ground with the higher end performing more consistently than in the past few years, especially those properties located on the waterfront. The average sale on Nantucket is $2,048,000, an increase of 12% over last year. This is the first time it has been over $2 million since early in 2008. Continued on Page 2....
M A R K E T ( c o n t i n u e d
N E W S f r o m
P . 1 )
The average price of a Nantucket home is now $2,474,000, an increase of 9% in one year. The median price of a home is now $1,625,000, up 7%. The average price of a vacant lot is $763,000; the median price is $680,000, both down from last year, reflecting the entry into the marketplace of a number of lower priced parcels in the Mid-Island area. Additional positive indicators include declining time on the market (down to 8 months from 9 months last year) and properties are selling, again on average, for 90% of list price at the time of sale and 125% of assessed value. Assessed values typically lag behind the market by a year or more due to the methods used for data collection. The most active area for sales is Town (85 sales) which makes sense given the density of Town and the high demand for properties located in, or close to, the core district. The Mid-Island area followed with 60 sales, and then Surfside with 20 sales. The following areas have had 5 or fewer sales in 2017 so far: Dionis, Fisher’s Landing, Madaket, Middle Moors, Monomoy, Pocomo, Quidnet, Shawkemo, Shimmo, Squam, Tuckernuck and Wauwinet. This is largely a function of the size of each area and the relatively low number of listings. There have only been 27 sales under $500,000 on Nantucket this year and, of these, 7 were restricted for year round affordable housing. Between $500,000 and $1 million there were 90 sales. The most active price sector to date is between $1-2 million with 99 sales. Between $2-3 million - 56 sales; $3-4 million - 26 sales; $4-5 million - 12 sales; $5-7 million - 13 sales; $7-$10 million - 7 sales and there have been 7 sales over $10 million so far in 2017. Our market research indicates that in a typical year 34% of sales (dollars) occur in the first half of the year and 66% in the second half. The total dollars for the first half of 2017 are $391 million. The third quarter alone saw $364 million in sales. The number of sales that occur in the first half of the year averages 39% of total sales for the year; 61% of sales close in the last two quarters of the year. If history holds true the year will end up with around 550 sales valued over $1.1 billion.
Nantucket: Total # Properties Sold As of 9.30.17 600
500
400
300
200
100
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total Homes Sold
302
361
468
398
284
341
211
205
309
297
375
357
423
394
445
254
Total Lots Sold
125
148
176
117
59
46
26
30
43
39
78
94
86
98
74
49
Total Commercial Sold
11
16
41
22
9
12
11
2
12
11
21
18
19
22
12
8
Page 2
Nantucket Nantucket Real Estate Sales Dollars 3rd Quarter Comparison 3rd Quarter Sales Dollars in Millions
In Millions
400
+25% 350
300
250
200
150
100
50
0
1
Series2
2001
Series1
$94,357,799
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
$145,123,200 $206,390,746 $286,657,566 $333,835,163 $220,208,428 $286,437,000 $182,479,000 $122,162,000 $201,625,441 $141,263,000 $216,614,000 $238,599,000 $273,121,000 $250,775,000 $272,242,000 $364,153,000
Nantucket Bay Scallops The Nantucket bay scallop industry has been around for almost 100 years. Many scallopers remember the abundance of these bivalves in the 1960's-70's when over 100,000 bushels were caught annually. Today they harvest less than 20,000 bushels. Water quality and eel grass are the two most important factors for their survival, growth and health. Baby scallops climb up the eel grass to protect themselves from predators. If they make it 2 inches above the bottom of the sea floor only about 20% survive. If the seed scallop is able to climb up to 8 inches on the eel grass the survival rate improves to almost 80%. Studies have shown we have lost 30% of our island's eel grass in the last 20 years. Family scallop season opened on October 1st to mixed reports. Commercial season begins on November 1st.
H I R I N G
A N
A G E N T ?
Here are some helpful suggestions when hiring a real estate agent to sell your property: Talk to 3 or more agents: It is always best to get more than one opinion, and make sure that you understand how they practice agency. Do they only represent you or do they also represent a buyer on your property at the same time? References: Ask for references from the agent, no references, choose another agent! Lowest Commission: This is a red flag, usually you get what you pay for! Make sure to find out what is being offered or not offered for this reduced commission. Part-time Agent: Listing and selling real estate is a full time job. So much more goes into it than just pricing and showing. Hire a local professional who spends their work week in the real estate industry. Unrealistic Price: Did the agent give you a price that was significantly higher than the others? The is one of the biggest mistakes, this agent is “buying� your listing and most often it will just help sell the competing properties and not yours! Family: It is most often best not to do business with family. A problem/disagreement can damage the relationship. If they are the best person for the job, go for it but with caution. Page 3
On a Septic System? A septic system is integral to the proper functioning of your house. Three main reasons to properly maintain your system are: expense (failed systems are expensive to repair and replace), health (your family health, community and environmental health depend on properly treated wastewater) and the Nantucket economy (failing systems can pollute our harbor and ponds impacting fishing, tourism and recreation). Here are some tips that will help maintain the health of your septic system. For sinks, toilets and showers: never use bleach, Liquid Plumber or Draino. Use Sodium Laurel Sulfate-free detergents for dishes, dishwasher, laundry detergent, shampoo and soaps. A lot of Trader Joe’s shampoos and soaps are SLS-free. Method, Mrs. Meyer’s and 7th Generation are NOT! Please read labels carefully or go on-line to find brands that are SLS-free. Wipe out cooking pans of all grease and oils with a paper towel before washing them in the sink or the dishwasher. Expired salad dressings and oils should not go down the drain. Never put anything like paint thinner down the drain. If it goes down the drain it can end up in our harbors, ponds or aquifers! Do not do all of your laundry loads at the same time; spread them out over the week. Please do not use Brewer’s Yeast or RidX. Some people say it is good for a septic system. It is not! One of our own observations: if someone is going to be taking a bath in the evening, do laundry in the morning. All of the water draining out of the tub, in conjunction with a load of laundry, can be overwhelming to the system. And, lastly, get your septic system pumped out every other year. And have your system inspected every five years if it is a conventional system. For additional information please contact the Nantucket Board of Health at 508.228.7233.
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V A C A T I O N
R E N T A L S
Now is the optimal time to book a vacation rental for next summer, especially if you are trying to visit Nantucket during the month of August. Many of the most popular rental properties already have leases in place for much of the summer of 2018! We encourage you, if you are able to, to make a trip to the island to view potential rental properties this fall. Availability is changing daily at this point! Rentals during July tend to be slightly more affordable than during August. The months of June and, especially, September are lovely on Nantucket with all of the businesses open and fewer crowds. An added bonus is that it is easier to get a ferry reservation for your car during the shoulder seasons. The Steamship Authority begins taking auto reservations for next summer in late January 2018. We have a number of rental properties that have Friday or Sunday turnover days, making it easier for vacationers to get on, and off, the island. Please contact your Atlantic East agent to get more information on booking a vacation rental.
A Few Words of Caution Regarding Valuations With the proliferation of real estate related information on the world wide web it is more important than ever to be aware of the source of the information. In our experience, some of the least reliable sites are those that are most frequently used! If you are seeking accurate, substantiated information about the value of your property (wherever it may be located), we urge you to work with a trusted local real estate professional. When you do you have the benefit of local experience and knowledge. Real estate markets can move rapidly and current information is crucial to establishing value.
Atlantic East brokers do hundreds of Broker Opinions of Value each year and, because we work full time and year-round in Nantucket Real Estate, we are extremely experienced with accurately assigning value. An Opinion of Value may be necessary for a lender, estate planning, for an inter-family transfer or prior to listing a property for sale. Some factors that are considered are comparable sales data, competing listings and market conditions and trends. It is very important that the evaluator is personally familiar with the properties being used to help establish value. Please contact your favorite Atlantic East agent if you would like to have a complimentary updated analysis of your property. Page 4
What is the Deal with Swimming Pools? Private swimming pools have become increasingly popular on Nantucket as many of today’s buyers want the same amenities that they enjoy at home. The Nantucket Building Department keeps records of the number of permits issued for any kind of major construction on island, including pools and spas. In 2000 there were only 11 permits issued; in 2009 there were 24 and in 2016 there were 104! Swimming pools need to conform to the Zoning By-Law, require Historic District Commission (HDC) approval and a building permit issued by the Town of Nantucket. Prices start at around $100,000 and go up from there depending upon the soil conditions, the size of the pool and how elaborate the design is. We have seen infinity pools, hot tubs, spas, saunas and a variety of other pool add-ons. Much of the cost is in the hardscaping (the materials that surround the pool, typically stone) and the landscaping. Pools are also required to be fenced in for safety. Count on having some sort of structure to house the equipment as well. Add a pool house or cabana and fire pit and the expense climbs even higher! Rental homes with private pools are now in very high demand and command top rental rates.
Update on Local Happenings! The construction of our new hospital is well underway. Nantucket Cottage Hospital invited the community to sign the final large steel beam last week before it was hoisted into place. A number of Atlantic East agents signed the beam! The hospital is being funded largely through private donations and is expected to be open in the spring of 2019. Nantucket has a home rule petition pending at the State House. H. 2794 seeks permission to form a local Affordable Housing Bank, modeled after the Nantucket Islands Land Bank. The bill would levy a one-half percent fee on sales over $2 million which would be used to help fund housing solutions for low and middle income islanders. The article authorizing the bill was twice approved (once unanimously) by Nantucket’s Town Meeting. Have an old refrigerator? National Grid is offering $50 to customers who recycle their old, inefficient refrigerator or freezer through the Mass-Save Appliance Recycling Program (at different times throughout the year). www.masssave.com/recycle.
Nantucket: Home Prices As of 9.30.17
2474
2500
2378
Avg Home ($OOO)
2276
2271
Median Home ($OOO)
2164
2124
2103 1945
2000
1970
1672
1666 1550
1500
2133
1726 1625
1528
1495
1525
1425
1525
1400
1297 1187
1000
1150
1190 1100 1013
970
917
1050
999
775
500
0 2002
2003
2004
2005
2006
2007
2008
2009
Page 5
2010
2011
2012
2013
2014
2015
2016
2017
Nantucket: Sales as % of List Price and Assessed Value As of 9.30.17
160%
150%
140%
130%
120%
110%
100%
90%
80%
70% Avg Sale as % of List price Avg Sale % of AV
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
90%
90%
94%
93%
91%
93%
93%
90%
79%
82%
84%
88%
90%
91%
90%
2017 90%
121%
151%
135%
135%
152%
130%
114%
99%
95%
106%
89%
81%
139%
141%
103%
125%
Congratulations to Natasha Vallett! In August Melinda Vallett's husband Chris and 15 year old daughter Natasha raced in the 45th Opera House Cup Regatta, Nantucket's pre-eminent wooden sailboat race. Natasha was at the helm of Defiance, her family's Wianno Senior. Defiance, built in 1969, has been completely and meticulously restored over the past twenty years, single handedly by Chris. Natasha was awarded the Gwen Gaillard Spirit of the Race award for being at the helm of Defiance and for carrying on Gwen's vision of this being a family race. The Opera House Cup was founded by Gwen Gaillard and Chick Walsh. Natasha has been sailing with Nantucket Community Sailing since she was 6 years old, has worked her way up through their fleet of boats, and has been an instructor in training the past two summers at their Polpis site. This was her first Opera House Cup Regatta....and will hopefully be the first of many.
Atlantic East N A N T U C K E T R E A L E S TAT E Penny Dey, GRI, ABRM and Heidi Drew, ABR, RSPS, SRS, Principal Brokers Ken Beaugrand; Linda Bellevue, GRI, CBR; Peter DuPont; Alison K. Forsgren, ePro, NAR Green, SRES Mary D. Malavase, ABR, RSPS, TRC, SFR, SRS; Jane Miller, ABR, RSPS; Erikka Perkins, Rental Manager; Meg Ruley, ABR, RSPS Lisa Sherburne, ABR, RSPS; John F. Trudel III, SFR; Melinda Vallett; Christine Whelden, ABR; Geri Walker and Ani Mulcahy, Office Managers
We believe in doing one thing and in doing it well. 82 Easton Street Nantucket MA 02554 t: 508-228-7707
NantucketRealEstate.com Volume XIII, Issue 4, Autumn 2017