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A U T U M N Some of the things we love about the fall are the really blue skies and amazing sunsets, scallops and cranberries, the smell of wood burning fires and the chance to spend time with friends after a hectic summer. The pace has slowed down on island, compared to last year at this time, as folks have returned to school this fall. The ocean is not yet too cold and most of the restaurants and shops are still open, some with abbreviated schedules. It is a wonderful time of the year to be on Nantucket! The real estate market on Nantucket continues to break records. The escalation in activity and prices began in late spring of 2020, driven largely by the pandemic and people's desire to live in places that were perceived as safe. As of Q3 this year the total number of property sales are up 50% compared to the first three quarters of 2020. The dollars represented by these sales are up 43%. This is not sustainable as we continue to experience very low supply and unprecedented demand. Total sales dollars in 2020 were $1.895 billion, compared to $1.018 billion in 2019. As of the end of September, sales on Nantucket were $1.467 billion putting us on track to exceed, for the first time, $2 billion in 2021. A total of 679 properties changed hands in 2020; through the third quarter of 2021 there have been 539 sales. The average selling price of a property on Nantucket is $2,723,000 (-2%). The average selling price of a house is now $3,167,000 (-2%) and the median house price is $2,500,000 (+3%). Vacant land is selling, on average, for $1,349,000 (-11%) and the median price of land is $1,050,000 (+8%). Continued on Page 2...
MARKET NEWS, (continued from page 1) The average time a property is listed for sale on Nantucket is down to 7 months. Properties are currently selling for an average of 93% of list price and for 147% of assessed value at the time of sale. The biggest story right now is the lack of inventory. Today there are a total of 137 properties on the market on Nantucket. As of this writing there are only 12 pieces of vacant land for sale on the entire island, ranging in price from $675,000 for a 5,000 s.f. commercial lot near the airport to $7,695,000 for a lot of over 7 acres in Monomoy with views of Nantucket Harbor and Town. There are 108 single family residential properties currently listed ranging from a small beach house in Madaket for $895,000 to a large and elegant estate property in Town with multiple dwelling units and lots for $28,000,000. With an absorption rate in the range of 600-700 properties per year, the inventory is not aligned with demand. With over 60% of our island permanently held by various conservation groups, the pressure on the remaining land is intense. It is estimated that there is less than 5% of vacant land on Nantucket that has not been developed. A significant percentage of new construction this year is on properties that previously had a structure. Many of these homes get re-located (sometimes re-purposed for year-round housing) but some end up going to the landfill. Most buyers want properties that are in renovated or new condition with a high level of amenities, and they are willing to pay more if the property can be used right away. To build on Nantucket has always been time consuming, complex, and costly, even more so now with the supply chain issues of the last 18 months. Interest rates remain low, but there are indicators that rates may rise in 2022, although many buyers on Nantucket do not require a financing contingency in the current competitive climate. For sellers, it remains a great time to sell, especially if one has owned the property for 5 or more years.
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NANTUCKET SALES BY AREA 2021 YTD
MADAKET SEPTIC DEADLINE - IMPORTANT! Maintaining the health of both Nantucket and Madaket harbors continues to be a primary goal for the Town of Nantucket. Reducing nitrogen from septic effluent, fertilizer application and storm water runoff are some of the methods being used to achieve this. One of more significant projects in the past year extended Town sewer to areas of Monomoy, Shimmo and Polpis. Although the extension of Town sewer to Madaket was approved at Town Meeting some years ago, it failed to secure the necessary votes to fund the project. As a result, existing septic systems in Madaket that do not comply need to be upgraded. In April of 2020 the Nantucket Board of Health amended Regulation 51.00 which affects properties located in the Madaket Harbor Watershed Protection District, Zones A and B, whose septic systems are in technical failure, requires owners to repair their system within 12 months. This includes properties located in Fisher's Landing. The deadline for compliance is November 15, 2021. The regulations specifically require the installation of a Massachusetts Department of Environmental Protection Innovative/Alternative septic system with nitrogen reduction of at least 19 mg/l. Owners will have to have the system designed, permitted, and installed which takes some time and will be costly. Do not put off compliance - there are stiff daily fines for non-compliance. For more information, please contact the Nantucket Health Department at 508.228.7200 ext. 7014. Page 3
Nantucket Good Neighbors Short term rentals have recently been targeted and blamed for all of the challenges on Nantucket (with the exception of erosion). There is a nearly 100 year history of people renting their homes during some part of the summer season. For many owners, it is necessity in order to be able to maintain and keep their home. Last spring an article was brought to Nantucket's Annual Town Meeting that sought to restrict and control how people rent their homes. It was resoundingly defeated with 68% of those in attendance voting it down. It was clear that voters saw it as an overreaching attack on private property rights. Since then, Nantucket Together (a group of concerned citizens) has been working hard to identify what the real issues are that are impacting the quality of life for our community during the summer season. As Nantucket has become more popular there are clearly some issues with overcrowding of homes (rentals and otherwise), excessive noise and inconsiderate behavior. In our experience, this occurs in a very small percentage of rental homes. We work hard to educate our guests about how it is different here on Nantucket - many homes are close together; sound carries far, and we have a noise by-law that kicks in at 10 PM. Nantucket Together, in collaboration with others, is in the process of establishing a Good Neighbor Pledge that will be widely distributed to the ferries, the airport, to our rental homeowners and their visiting guests. Please stay tuned for more information.
SCALLOPING! A true sign of autumn on Nantucket is the advent of the recreational bay scallop season which began on October 1st. The long-cherished tradition of recreational scalloping is permitted from Wednesday through Sunday. Time to check your waders and scalloping gear and go catch some of the tasty bivalves! Nantucket has one of the last remaining bay scallop fishing industries in the country. From the mid1870's to the early 1980's, bay scallops were harvested commercially along the East Coast and were abundant. Shrinking habitat, overfishing and pollution have led to the decline of the scallop fishery. The bay scallops from Nantucket are highly sought after by chefs and gourmands around the world. A license is required for scalloping and can be obtained from the licensing office at the Public Safety Facility on Fairgrounds Road.
100th Covenant House and Counting Housing Nantucket recently celebrated the 100th covenant property transfer to a buyer since the inception of the program. The property was a 0.37 acre vacant lot located at 9 Field Avenue and it sold for $365,000. This is a huge milestone and there are now 267 people living in covenant homes. In 2001 a small group of people had the vision to create the program that enables a property owner, whose property could not otherwise be subdivided, to do so if a Nantucket Housing Needs Covenant is put on one of the units in perpetuity. One unit becomes restricted to yearround occupancy under certain income and asset limits and the other remains a market rate unit. Often a family will start out in a covenant house and then be able to move into a free-market home over time, thereby freeing up the covenant house for another family. One of the successes of the program is that it has created more affordable yearround housing across the island, and not all concentrated in one place. Each year the maximum re-sale price is adjusted based on a formula related to median area income and residential mortgage rates. When the program was established in 2003, the maximum re-sale price was $406,162; the current maximum re-sale price is $888,515.The sellers of the 100th property are long-time year round residents who had a dream as they approached retirement age. They wanted to buy a boat and sail around the world but also to be able keep their home on Nantucket. By creating a covenant lot, they were able to get the funding to realize their dream and, at the same time, help another year-round family have a permanent, stable home on Nantucket. There is funding available from the Town, in the form of a no-interest loan, for sellers who would like to create a covenant property. Up to $10,000 is available to help pay for legal and surveying fees, permitting and other expenses related to the creation of a covenant property. Thank you to Housing Nantucket – keep up the good work! Page 4
Nantucket Life
Slow Down and Read It!
There is a new half hour local TV program from Nantucket Community Television, NCTV highlighting the culture, history, environment and uniqueness of the island. The intent of these episodes is to “capture the spirit of the island and delight viewers who love Nantucket”.
Caution is advised when using electronic signature platforms such as DocuSign. Do not allow the convenience of this speedy transaction to assume the paperwork is correct. If you are signing a contract in this manner, the contract is immediately binding the moment all parties sign and you will not be able to cancel without the consent of the other party. It is a contract. Always read, review and understand any contracts before signing.
Nantucket Life may be viewed at 12:00 PM and 7:00 PM on Nantucket local Comcast channel 18, nctv18.org, online on YouTube/NCTV18, Facebook Live/NCTV18, and IGTV/NCTV18.
WELCOME TO ANGEL FRAZIER Atlantic East is delighted to welcome Angel Frazier to our team. A Nantucket native (whose family dates back to 1815), Angel’s close ties to the island are an advantage to her clients when buying, selling, or renting Nantucket real estate. Angel’s expert knowledge of the market and her focus make for easy and seamless transactions. She has successfully owned and operated a Nantucket business for over 20 years. Her business acumen has led her to manage several of her own rental properties as well as building projects, giving her an insider’s track of what it takes to build and rent on Nantucket. Angel has negotiated the purchase and sales of her own properties, throughout the East Coast, and internationally; she understands well the importance of good communication, and the value of timesensitive action. Angel is attentive to her client’s individual needs, and understanding their priorities, and efficiently guides them through purchase or sales transactions to meet their expectations. Whether first time guests to the island or a seasoned visitor, Angel's goal is to share her extensive knowledge of Nantucket real estate and provide the highest standard of service in finding a client their “piece” of the island. Angel is invested in Nantucket’s future. Her three beautiful children, Felicity, Harper, and Pepper, now carry on as native islanders. Page 5
WORD OF THE YEAR We came across this word that sums up the real estate market here and in many resort communities over the past year:
Oligopoly
Noun (ol-i-gop-uh-lee)
The market condition that exists when there are few sellers, as a result of which they can greatly influence price and other market factors. Source: Dictionary.com
Please - No Wipes in the Pipes! A nationwide alert and pending bill in front of Congress has brought attention to wet wipes. Wipes are highly available, widely used now to sanitize and most are not “flushable”. They do not decompose in water as toilet paper is designed to do. The wipes are clogging and causing septic systems to fail, damaging wastewater treatment facilities and public sewer systems. As a result, the micro-fibers (plastics) in the wipes are ending up in our environment. Our local sewer department has had a record number of wipes flushed into the system, requiring removal. A few homes have had the plumbing blocked, requiring a costly service to remove. Spread the word, tell your guests, tenants and cleaners please!
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, Broker/Owners Ken Beaugrand; Linda Bellevue, GRI, CBR; Peter DuPont; Alison K. Forsgren, ePro, NAR Green, SRES Angel Frazier, Mary D. Malavase, ABR, RSPS, TRC, SFR, SRS; Jane Miller, ABR, RSPS; Erikka Perkins; Meg Ruley, ABR, RSPS; Lisa Sherburne, ABR, RSPS; Melinda Vallett; Geri Walker, RSPS, SFR; Christine Whelden, ABR; Tanya Babaitsava, Office Manager We believe in doing one thing and in doing it well! 82 Easton Street Nantucket MA 02554 508.228.7707 NantucketRealEstate.com
Volume XVII, Issue 4, Autumn 2021