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It is clear that all the good things that summer brings have arrived on Nantucket. The sun sets late, the ocean is warmer and the local strawberries are ready for picking. The restaurants and shops are all open, the harbor is filling up with beautiful boats and the bass are running. The real estate market is very active - no surprise given how 2014 started. To commemorate our 10th year in business, we have a new logo, and are doing a complete update of our web site. Although various tools are important to our business, the most vital piece is our dedicated agents who continue to prove that they are the best on the island. We spend our time listing, marketing and selling property. As part of this we do a considerable amount of work evaluating Nantucket properties, sometimes in order to sell, sometimes for planning. Atlantic East was just recognized by Yahoo as a leading vacation rental office on the island. We never over represent, we pay attention to details and are available as an on island resource for our clients. Our business is largely referral based, for which we continue to be thankful. Please stop by for a visit on our front porch if you are in the neighborhood. Here is the story on the Nantucket real estate market: Year to Date: There have been 225 sales in the first half of the year, compared to 177 in 2013, an increase of 28%. The dollars that these sales represent are $383 million this year compared to $236 million in 2013 - an increase of a whopping 62%. To keep this in perspective, the total number of sales in 2013 was 469, amounting to $748 million in property transfers. We are solidly on a trajectory to exceed 2013 given that the majority of sales occur in the 3rd and 4th quarters. Prices are on the Rise: The average price of a property on Nantucket is now $1,706,000, up from $1,597,000 at the end of 2013, an increase of 7%. Perhaps more importantly, the median price of a property on Nantucket has risen from $885,000 to $1,115,000 in 6 Continued on page 2... months.
Nantucket: Total # Properties Sold Year to Date As of 2nd Q 2014
600
500
400
300
200
100
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total H omes Sold
239
302
361
468
398
284
341
211
205
309
297
375
357
179
Total Lots Sold
138
125
148
176
117
59
46
26
30
43
39
78
94
36
Total C ommercial So ld
14
11
16
41
22
9
12
11
2
12
11
21
18
10
VIEW FROM THE ISLAND, Con’t from Page 1 Fewer Listings: As of June 30 there were only 355 properties for sale on Nantucket, 16% fewer than there were one year ago. With the decline in inventory and the increase in demand, prices are on the rise. A word of caution to sellers - the market on Nantucket is approximating, in terms of values, the market in 2005-2006, still off from the previous market heights of 2007, just prior to the recession. The market growth appears to be more incremental now and less acute. Nantucket Follows the Stock Market: Our friend H. Flint Ranney, who was an avid market watcher, often stated that the real estate market on Nantucket historically follows the stock market. With the Dow poised to hit 17,000, Nantucket real estate seems to be following, true to history. Properties are Selling More Rapidly: It takes 6.94 months, on average, for a property on Nantucket to sell now. Compare this to 11 months in 2008. Time on the market is the shortest it has been in 14 years. The market is extremely active and fast moving. Sellers are Getting Closer to List Price: The average selling price right now, as a percentage of list price is nearly 95%. In 2006, when many people were still in denial about the market conditions, it was 91%. It has been between 90% and 95% for the past 15 years. Prices and Assessed Values: The Town puts an assessed value on each property on Nantucket which typically lags behind the market. The purpose of the assessed value is for setting the property taxes for a particular property. Market analysis is done of the 3 years leading up to a revaluation which means that the assessments are behind the market. properties on Nantucket are currently selling for, on average, 126% of assessed value. Page 2
THIS and THAT CAN’T FIND PARKING AND HAVE TO MAKE THE BOAT? The Fast Ferry Connector Program operates a FREE shuttle from a secure remote parking lot at 2 Fairgrounds Road to both the Steamship Authority and the HyLine fast ferries. Leave your car, hassle-free, out of Town and hop the shuttle right to the boat (or from the boat when you return). This is a pilot program of the Town and other interested stake holders that just went into effect and it appears to be working well. LAST MINUTE RENTALS: If you are looking to book a last minute rental (and we still have some available), it is to your advantage to be flexible about your dates. We have a few really great properties with some time still left and we have had some cancellations that we are looking to re-book - please contact your Atlantic East broker for more information. 2 LOCAL GUYS AND A TRUCK: Our friend Alex Perkins, brother of Renee Perkins who is our Summer Assistant, is back on island and ready to help with dump runs, cleaning out houses and garages and general odd jobs. These guys are reliable and efficient and have great references. Alex can be reached at 508-332-0832. LOW PROPERTY TAXES: Our clients are often surprised at how low property taxes are on Nantucket. The reason for this is that 80% of the taxes are paid by property owners who do not use government services year-round (summer residents). The residential tax rate is $3.76 per $1,000 of assessed value. For example, on a property assessed at $1 million dollars the annual property tax bill would be $3,760.
Nantucket: Sales as % of List Price and Assessed Value 2nd Q 2014
160%
150%
140%
130%
120%
110%
100%
90%
80%
70% Avg Sale as % of List price Avg Sale % of AV
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
91%
90%
90%
94%
93%
91%
93%
93%
90%
91%
91%
92%
94%
95%
140%
121%
151%
135%
135%
152%
130%
114%
99%
89%
97%
105%
113%
126%
Page 3
2014
Nantucket Real Estate Average Selling Price (000's) Year to Date 2nd Q 2014 2500
2000
1500
1000
500
0 Average Selling Price (000's)
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
475
533
666
970
940
862
1001
1373
1801
1931
2135
2316
1834
1907
1532
1645
1597
1706
HOT, HOT, HOT The area of Nantucket with the highest number of sales as a percentage of listings is Town. For the first half of 2014, there averaged 75 listings in Town. As of June 30th, there have been 54 sales of properties located in Town. Some reasons that Town continues to appeal are because it is limited in size, folks can easily navigate to fine dining, historical sites, culture and shopping and it is central to everything on the island. Town also appeals because for folks who may be reliant on cars so much of the year, it is safe for youngsters to have some independence. It is no surprise that the second most active location is the Mid-island area with 53 sales. This area is the large area surrounding Town where many of our businesses and more affordable housing are located. Buyers today are seeking properties that are either new or in excellent condition and those with a high level of amenities. Properties with pools are popular as well. However, with the decline in the number of properties for sale, people seem to be more willing to take on properties that need renovations and/or updating than they were during the recession. This is reflected in the numbers from the Nantucket Building Department. In the first 6 months of the year there have been 67 permits issued for new single family dwellings compared to 108 in all of 2013. There have been 133 permits for renovations and additions and 42 permits for pools/cabanas! Page 4
Don’t Dump It If You Don’t Want to Drink It! Our ground water is the sole source of drinking water on Nantucket. We have no alternatives or a water line from the mainland to rely on if our aquifer becomes contaminated. Because of this, Nantucket has been designated a sole source aquifer by the U.S. Environmental Protection Agency. Help protect the health of our drinking water, ponds and harbors by making some of the following choices: Have your septic system pumped every year to keep it in working order. Minimize lawn size and/or consider using special lawn seed mixtures formulated for drought resistance and lower nitrogen requirements. If fertilizing the lawn, choose fertilizer containing slow-release, water-insoluble forms of nitrogen and limit the frequency of fertilization. Adhere to the new fertilizing application dates: Fertilize only from May 15th to October 15th. When watering your garden or lawn, irrigate in the early morning to reduce evaporation. Use non-toxic cleaners. For example, instead of toxic drain cleaners, try using boiling water, a plunger, or a metal snake to clean drains. Baking soda or vinegar mixed with warm water and elbow grease are useful ingredients for oven and general household cleaning. Do not use weed killers to remove weeds from your driveway. Try spraying vinegar on a very hot day on the weeds. Dispose of paint, oil and pesticides at Nantucket's household hazardous waste days. Remember, what you throw away, does not really go away.
Re-Financing or Buying a Home? Here is an important bit of vital information your bank or loan officer may not mention when you are re-financing a property or buying a home. Once you receive your pre-qualification letter, DO NOT make any large purchases such as a car or boat. Do not quit your job, or make any financial moves that will affect your credit or financial standing with the bank. There are lending guidelines that the bank is required to follow and any major financial move may alter your loan approval to a denied status. The bank will re-check all your financials before the closing to reconfirm all your information.
$3,000,000
Nantucket Real Estate
$2,500,000
2003 - 2014 YTD as of 2nd Q 2014 $2,000,000
$1,500,000
$1,000,000
$500,000
$0 Median Lot
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$320,000
$475,000
$700,000
$1,067,000
$1,375,000
$1,100,000
$700,000
$845,000
$970,000
$750,000
$688,000
$879,000
Average Lot
$519,000
$787,000
$1,190,000
$2,311,000
$2,378,000
$1,915,000
$970,000
$1,095,000
$1,769,000
$1,483,000
$1,258,000
$1,465,000
Median Home
$917,000
$1,150,000
$1,495,000
$1,550,000
$1,495,000
$1,425,000
$1,275,000
$1,100,000
$1,013,000
$1,050,000
$999,000
$1,150,000
Average Home
$1,297,000
$1,672,000
$2,164,000
$2,378,000
$2,103,000
$2,271,000
$1,945,000
$1,970,000
$1,528,000
$1,666,000
$1,726,000
$1,715,000
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ONGRATULATIONS to Broker Mary D. Malavase on obtaining her SFR certification from the National Association of Realtors. The Short Sales and Foreclosure Resource certification entails specific training in the area of distressed sales and how to limit risk for buyer and seller clients.
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Congratulations also to Sales Associate Christine Whelden who obtained her ABR designation, also from NAR. The Accredited Buyer’s Representative (ABR®) designation is for real estate buyer agents who focus on working directly with buyer-clients at every stage of the home-buying process. Atlantic East Nantucket Real Estate now has 6 agents who hold this designation.
I
N THE KNOW: To stay on top of current island information please check out our blog at www.NantucketRealEstate.com. You can also follow us on Facebook or Twitter. We try to post information that is timely and useful and provides some local perspective. We can also provide you with complimentary access to Nantucket’s MLS, called LINK Nantucket. It is the easiest way to get complete information about current property listings on the island. If you have not yet signed up for LINK or if you would like information in greater depth about a particular area or sector of the market, please contact your Atlantic East broker.
Nantucket = Sharing For the past 10 years John Trudel’s family (John, Susan and sons Jackie and Zander) has hosted a guest for a few weeks each summer who has become a member of their family. Since 1877, The Fresh Air Fund, a not-for-profit agency, has provided free summer experiences in the country to more than 1.8 million New York City children from low-income communities. The Trudels have been host family to Naya who lives in the Bronx during the rest of the year. John taught Naya how to ride her bike, Susan has helped her with college planning and the boys have taught her how to boogie board and fish. John reflected that on the very first day of her initial visit, when Naya was 8 years old, her wish was to roll down a green field of grass, a simple thing that demonstrates so well what the program is about. It is not about spending money, but rather about volunteering your time and sharing your family life with others. Those of us fortunate enough to live on the island realize that the opportunities available on Nantucket are not available to all.
ATLANTIC EAST N A N T U C K E T R E A L E S TAT E Heidi Drew, ABR, RSPS Penny Dey, GRI, ABRM, Ken Beaugrand; Linda Bellevue, GRI, CBR; Peter DuPont; Alison K. Forsgren, ePro, NAR Green, SRES Mary D. Malavase, ABR, RSPS, TRC, SFR; Jane Miller, ABR, RSPS; Erikka Perkins; Meg Ruley, ABR, RSPS Lisa Sherburne, ABR, RSPS; John F. Trudel III, SFR; Melinda Vallett; Christine Whelden, ABR; Gail Osona, Affiliate; Geri Walker, Office Manager; Renee Perkins, Summer Assistant
We believe in doing one thing and in doing it well. 82 Easton Street Nantucket MA 02554 t: 508-228-7707 1-800-228-4070
NantucketRealEstate.com Volume X, Issue 3, Summer 2014