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e were never so happy to welcome spring as we are this year. It was a very long winter and just when we thought it was over, there would be another snow storm. We surely appreciate the changing season, more than ever, after last winter. One of the wonderful things about living on Nantucket is that each season brings a new pace, environment and climate to our island. We enjoy the return of the longer days and daffodils in the spring, being outside and welcoming back family and friends in the summer and the peace and quiet come autumn. For some reason, the changing seasons seemed to be amplified on Nantucket, possibly because we are on an island. This month we celebrate one year in our new location at 82 Easton Street. It has been an excellent spot for us as we embark upon our 10th year in business at Atlantic East Nantucket Real Estate. Last year brought many changes for our office which we believe better positions us to serve the needs of our clients and customers. We are looking forward to an action-packed summer with all, very capable, hands on deck. The real estate market on Nantucket continues to rapidly move with the number of sales up 74% for the 1st Q of 2014 compared to the 1st Q of 2013. The dollars represented by these sales were up 141%. The average price of a property on Nantucket is now $1,690,000, compared to $1,224,000 at the end of 2013. The biggest challenge facing the Nantucket market in 2014 will be the declining number of properties for sale. With the increased activity in 2013, fewer distressed properties coming to market and increased confidence on the part of buyers, we are faced with the lowest inventory coming into spring that we have seen in many years. Never have we seen market conditions start to shift so rapidly. In 2012, foreclosures and short sales constituted 10% of the market, in 2013 is was 4% and to date in 2014 there has been only one foreclosure sale. This is partly due to the fact that, with the economic recovery, jobs for year round folks on Nantucket are more plentiful. The price sector hardest hit by distressed sales was properties under $1 M, largely occupied by people who live on-island all year long. Continued on Page 2....
VIEW FROM THE ISLAND 1st Quarter of 2014 Very Active: There were 103 sales in the 1st Q of 2014, representing $174,073,000. This compares to 59 sales, representing $72,207,000 in 2013. The last 1st quarter this strong was in 2006, just prior to the recession. (See charts on Page 4). Shorter Time on Market: The average time a property is listed for sale on Nantucket is now 6.94 months, compared to 9 months in 2012 and 11 months in 2008. This number has been steadily declining since 2008, indicating that buyers feel more confident than in the past. Values Rising: The average selling price, as a percentage of list price is now 95.19%, compared to 92% in 2012 and 90% in 2009. The average selling price, as a percentage of assessed value is now 134%, compared to 105% in 2012 and 99% in 2009. So, assessed values, which are set by the Town of Nantucket every 3 years, serve primarily as a barometer for comparison to similar properties at this time. What is Selling? The highest demand continues to be for either vacant land in prime locations or for houses that are in move-in condition. Properties with water access or water views are also moving right now. Town and ‘Sconset have seen the highest appreciation within the past 12 months of any areas on the island. In 2013 half of all properties sold were $900,000 and under; to date in 2014 half of all properties sold were under $1,200,000. Who is Buying? People who are buying on Nantucket are those who wish not only to diversify their holdings, but those who have the ability to spend time on the island. Predicting the Future: There were 469 sales on Nantucket in 2013, representing a total of $748 million. The first quarter of this year would indicate that 2014 will surpass last year, barring any unforeseen market correction.
ANNUAL TOWN MEETING ROUND UP Our Annual Town Meeting was held last Saturday (pretty much all day long), led by Moderator Sarah Alger, and the Town considered and took action on 107 Articles. Only 20 articles were called for discussion and the rest were voted the way they were recommended by either the Planning Board or the Finance Committee. Attendance was fairly sparse, possibly because the meeting was held on a Saturday, or perhaps because the island population feels that the elected officials are doing a good job. Of the more than 8,000 registered voters, 455 were in attendance. Here are some outcomes of particular interest: Article 33: Local Room Tax Visitor Services - a citizen’s article to affirm previous Town Meeting votes, this article passed and is a nonbinding referendum to the Town that 30% of the funds that come back to the Town from the Room Occupancy Tax be earmarked for the Visitor Services Department. Article 34: 11 Mill Hill - also a citizen sponsored article, this would have authorized the Town to proceed, in conjunction with others, to purchase the Egan property to be used as recreational open space. Although a majority voted for the article, it did not pass as it required a 2/3 majority. Article 48: Cap on Major Commercial Developments - in spite of a recommendation by the Planning board to “take no action”, this article was called by a citizen for discussion and a vote. Had the article been voted down, it would not have been able to return to Town Meeting for 2 years (unless it was substantially different or 4/5 of the Planning Board members wanted to bring it back). The article did not pass. This is the article that sought to increase the square footage permitted for structures under an MCD permit. Article 87: Home Rule Petition to amend the existing original Historic District Commission Act - this was sponsored by our Board of Selectmen and, after robust discussion, the meeting voted to have 2 seats on the HDC appointed (2 year terms) and keep 3 seats as elected (3 year terms). Assuming approval at the state level, this would be phased in as existing terms expire for current HDC members. Town Acquires Many Small Parcels: The meeting voted to approve a number of articles dealing with the taking and disposal of numerous small parcels throughout the island, including some paper roads. This enables properties that have not been generating property tax income to be on the tax rolls going forward. The most likely method of disposition will be through the Town’s yard-sale program. Contact your broker for a complete list. Page 2
BUILDING BY THE NUMBERS
The numbers from the Nantucket Building Department tell a very graphic picture of the trends in building (and demolition) on the island. The total number of building permits issued in 2013 was 1,714, the highest number ever. This includes building permits for everything from new dwellings to shingling permits. The number of permits issued for new single family residences in 2013 was 108, compared to 57 in 2012 and only 43 in 2009, the lowest in the past decade. In 2001 there were 235 permits issued for new dwellings - the highest of the past decade. Docks and Pools: In 2013 there were an astounding 59 permits issued for pools and docks. We can accurately surmise that these were mostly permits for pools since there is an island-wide moratorium on building any new docks. This compares to only 29 permits in 2012 and a low of 11 in 2000. Nantucket people has a long history of picking up buildings and either moving them to new locations or relocating the building on the existing lot. Sometimes, neither is an option and a person may apply for a demolition permit. The process is rigorous and involves obtaining permission from the Historic District Commission (the HDC) as well as the Building Department. The number of demo permits issued in 2013 was 18, the highest number in the past decade. The low was 2 demo permits in 2008, at the height of the most recent recession. The previous high was 16 permits issued in 2005, right at the beginning of the downturn. We have lots of additional information available in this area. Please contact your broker if you would like a more indepth view of the world of building on Nantucket.
Nantucket: Total Building Perm its 1800
1714 1565
1600 1455 1400
1326
1420
1446 1385
1366
1339
1339
1176
1200
1128
1119 1013
1000
800
600
400
200
0 2000
2001
2002
2003
2004
2005
2006
Page 3
2007
2008
2009
2010
2011
2012
2013
Nantucket 1st Q Sales Comparison No. of Transactions
180
160
140
120
100
80
60
40
20
Nantucket 1st Q Sales Dollars
Nantucket 1st Q Sales Dollars
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Houses
80
71
69
84
136
95
67
53
27
57
55
72
46
82
Land
39
29
26
42
16
16
10
5
1
4
5
6
15
Commercial
4
4
4
8
2
5
0
4
0
1
2
4
0
7
123
104
99
134
154
116
77
62
28
62
62
82
61
103
Total
$300,000
14
Year
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2001
2002
Dollars 1st Q. (000's) $142,515 $78,927
2003
2004
2005
2006
2007
2008
2009
2010
2011
$73,557 $152,158 $251,239 $229,730 $171,902 $150,468 $53,322 $108,095 $73,874
2012 $96,132
2013
2014
$74,334 $174,073
Good Eats: What is Happening With the advent of spring comes word of changes in the restaurant and food business on Nantucket. We are lucky to live in a place with such fine dining options. Here is what we know so far: Dupree and Company (wine and cheese shop) is opening a second business on Broad Street that will be a European style eat-in cafÊ. They are hoping to open by Wine Festival in May. Nautilus is opening at 12 Cambridge Street in the space formerly occupied by 12 Degrees East. The chef, wine director and bartender were previously at the Pearl. Captain Tobey’s is undergoing a renovation from the ground up and the new occupants will be serving southern BBQ. Island Kitchen, in the space formerly occupied by the Hen House, stayed open all winter serving quality food and all three meals daily. In case you missed it (which would be hard to do), last year Lola Burger opened at the rotary, just one mile from Main Street. They are now open for the season. Also last year, the Nantucket Bakeshop moved to their new location on Old South Road. Word is that the Downeyflake will re-open on April 7 and has been sold to long time Nantucket restaurant folks who will keep the same good, affordable food and vibe. There was a fire at Sushi by Yoshi last fall and they are about to start renovations hoping to be open by this summer. And it will be handicapped accessible. Page 4
the DAFFODILS
Mary, Queen of
The last full weekend in April brings the arrival of Nantucket Daffodil Festival. Having attended all of the past 39 flower shows and having grown for and entered the competition for many years, Mary Malavase followed a long term goal of becoming an accredited daffodil flower show judge for the American Daffodil Society. Most people don't know that there are over 30,000 different varieties of daffodils. The requirements to complete the certification take several years. The candidate must pass three judging schools, complete student judging of at least three daffodil shows, grow at least 100 different varieties of daffodils, exhibit daffodils in ADS approved shows for at least three years and must with at least five blue ribbons. After all the hard work to become a judge, now Mary is often invited to travel the country in the spring to judge flower shows. This year she has been asked to judge the National Daffodil Show at the American Daffodil Society's Annual Convention in Little Rock, Arkansas. Don't forget that if you are on Nantucket this year for the 40th Daffodil Flower Show at Bartlett's Farm‌look for Mary and she will be happy to give you a guided tour.
Nantucket Property Yearbook 2013 The 2013 Yearbook is now available digitally. The guide, published annually by the Nantucket Association of Real Estate Brokers (NAREB), provides a comprehensive look at the Nantucket real estate market. It features pictures of all properties sold onisland in 2013 (organized by price within each area), a thorough look at the different villages on Nantucket and a resource guide for both buyers and sellers of property. It also provides a statistical snapshot of the island real estate market for 2013. Check it out at http://nareb-online.com/sites/default/files/NPY%202013%20web.pdf.
Nantucket Real Estate Average Selling Price (000's) Year to Date 1st 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
1690
Page 5
Attention: Atlantic East Tenants! Our neighbor across the street, the Nantucket Hotel, is offering a special package to our tenants this season. They are extending an offer of weekly club membership to our renters. It includes the use of two outdoor swimming pools, children’s programs, dining privileges, fitness facility and spa services. The package represents a great opportunity for visitors to really take a vacation from some typical responsibilities. The Children’s Program includes organized activities by age group, morning drop-in programs for ages 3 years old to pre-teen, Evening Programs for ages 4 to pre-teen and swimming lessons for kids. The fitness facility is 4,500 square feet and includes the most current cardio and weight equipment and beautifully appointed locker rooms. The fitness facility also offers the use of complimentary Ipads and fitness and yoga classes. Dining options include pool side dining and bar service and charging privileges at the Breeze Bar and Café. The Spa offers massage treatments, an outdoor hot tub and whirlpool and saunas. One of the outdoor pools is a large family pool plus kiddie pool and the other is an adult lap/quiet pool. The cost per week, per family is $1,995. Please contact your Atlantic East agent for more information.
Love Nantucket: Put It On Your Car Nantucket's independent K-12 Lighthouse School, in partnership with the Boys and Girls Club and Nantucket Community Sailing, is raising funds to support the school as well as other island non-profits that serve children. Three quarters of the funds raised will be used to create an endowment to support the school's operational costs. One quarter of the money raised will be contributed to a fund administered by the Nantucket Community Foundation that supports other island non-profits which benefit children. When 3000 applications are submitted to the Massachusetts DMV, the state produces the first Nantucket Island license plate at which point $28 of the $40 fee per plate comes back to serve island children - both Lighthouse students as well as those whom benefit from the many organizations that provide programs and services for young people. The license plate would then be available in all Massachusetts DMV offices. As plates are renewed, the school/fund realizes the full $40 per plate. If you have a vehicle registered in Massachusetts, please consider helping to achieve this goal by submitting an application and a $40 check, postdated March 1, 2014. Your check will only be deposited when the license plate goes into actual production. Unfortunately, these plates cannot be ordered for commercial vehicles, motorcycles, or vanity plates. For more information: www.nantucketlicenseplate.org
AT L A N T I C E A S T 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; Geri Walker Affiliate: Gail Osona
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 2, Spring 2014