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We are especially excited to welcome spring this year after one of the longest, snowiest and stormiest, winters in memory. Winter is finally releasing its grip on Nantucket with longer days, actual warmth from the sun (when it is out) and signs of daffodils and forsythia coming into bloom. Nantucket seemed even quieter this past winter than usual, possibly due to the weather making travel both on and off island more challenging than ever. We are looking forward to seeing old friends, and new, for the Daffodil Festival, the last weekend in April. Fingers crossed for some sun! The real estate market on Nantucket continues a steady recovery with the average selling price of all properties on the island now at $1,755,000, compared to $1,532,000 at the height of the recession. The price of an average house on Nantucket is now $2,210,000, the highest it has been since 2008. The average lot is now $944,000. 1st Q Report: There were 89 sales for a total of $156 million in the first quarter of 2015. Activity was slightly off from 2014, likely due to the weather which prevented people from reaching the island. We are confident that 2015 will again be a strong year for real estate on Nantucket, a good thing, in that it impacts so many sectors of our local economy. Breaking Down the Market: In 2014 more than 25% of the total sales dollars were for properties selling for $5 million or more. These 35 sales constituted only 6% of total market share volume. To date in 2015 there have been 7 sales over $1 million, constituting 8% of the market. There were 44 residential sales under $500,000 in 2014; to date in 2015 there have been only 6, with an average listing time of 80 days. The most active price sector so far this year is under $1 million with 48 properties selling between $250,000 (vacant lot in Tom Nevers) and $987,500 (small antique home in Town). The highest price paid for a property on Nantucket so far in 2015 was $10,875,000 for a compound located in Brant Point on Hulbert Avenue, located across the street from the water. Continued on Page 2...
M A R K E T
N E W S
Properties are Selling More Rapidly: From a high of 11 months on the market in 2009 to the lowest it has ever been, properties are now selling, on average, within 5.1 months of being listed. This is a very clear indicator of current market conditions: demand continues to rise and supply is much more limited than it was even one year ago. Vacant Land: Fewer lots have sold this year compared to last year at this time, likely due to the lack of available inventory. Many local developers and builders recognized that the time to buy and start projects was 2013 and 2014. Commercial Properties: In the first Q of 2015 there were 8 sales of commercial property, compared to 7 for all of 2014 and none in 2013. There is no question that the sale of commercial properties is one of the strongest indicators of consumer confidence in the market. There is a shortage right now of both commercial sales and rental listings, especially in Town. Selling Margins as Indicators: Properties on Nantucket are now selling, on average, for 95.3% of list price at time of sale, the highest it has ever been since we started keeping track. The average sale as a percentage of assessed value is 139%, also the highest it has been in nearly a decade. Spring Market: All indications are that business will be good this spring and summer. New listings are coming on the market each day, some that were previously listed in a weaker market and some that are completely new to the market. If you own property on the island and have been thinking of selling, you should give serious consideration to having an updated market assessment of your property. Nantucket real estate has come out of the recession strongly and definitively. Although values are still off somewhat from the previous height of the market in 2005, there is no question that the real estate market on Nantucket has turned around and is headed up.
Nantucket: Total # Properties Sold As of 1st Q 2015
600
500
400
300
200
100
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total Homes Sold
239
302
361
468
398
284
341
211
205
309
297
375
357
423
56
Total Lots Sold
138
125
148
176
117
59
46
26
30
43
39
78
94
86
25
14
11
16
41
22
9
12
11
2
12
11
21
18
19
8
Total Commercial Sold
Page 2
Nantucket: Sales as % of List Price and Assessed Value 1st Q 2015
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
2014
91%
90%
90%
94%
93%
91%
93%
93%
90%
91%
91%
92%
94%
95%
2015 95%
140%
121%
151%
135%
135%
152%
130%
114%
99%
89%
97%
105%
113%
132%
139%
One Way That We Protect History: The HDC Here are some recent quotes by members of the Historic District Commission: “This building has to stay as quiet as possible and that deck is not quiet.” “Monomoy is no longer what it was; all the small houses have been swallowed by these monsters.” “It has come up a lot recently; someone buys a historic building and it doesn't conform to what he wants to do; the HDC seems willing to tear the building down. The applicant shouldn't have bought the historic building if it doesn't meet their needs.” The Nantucket Historical District Commission (HDC) is the official body responsible for the preservation and protection of the historic buildings of Nantucket. The law provides that “no building may be erected, reconstructed, altered or restored within the District without first obtaining Commission approval, as to exterior architectural features." Furthermore, no building or structure may be razed without first obtaining Commission approval. It is largely due to the work of the HDC that so many of our historic buildings remain intact. The HDC was originally authorized by annual Town Meeting in 1956 but their jurisdiction was limited to the two main island settlements of Town and Siasconset. In the late 1960s when a large sustained surge in development occurred and buildings that were unsightly and incompatible with existing island architecture were constructed, it became clear that the remainder of the island's limited 49-square-mile area required protection. As a result, the town voters petitioned the state to extend the Commission's jurisdiction to include the entire island of Nantucket as well as Tuckernuck and Muskeget Islands. This extension was enacted in 1970 by a special act of the Massachusetts State Legislature. The current HDC is an elected body of five volunteer individuals who devote countless hours each week to their duties as commissioners. There are two alternate members as well. They meet at least twice weekly and spend additional time doing site visits. Currently the five members of the HDC are elected and the alternate members are appointed by the Board of Selectmen. The guidebook, “Building with Nantucket in Mind”, has been published twice and amended numerous times. It is the go-to guide for anyone wishing to change anything on the exterior of their Nantucket property. In 2014 the HDC acted on well over three thousand applications for new dwelling units, additions and renovations, decks, paint color changes, window changes and signage. For more information, please visit the Town web site for the HDC at www.nantucket-ma.gov/283/Historic-District-Commission. Page 3
YOU WANT TO LIST AT WHAT PRICE? As a seller, one needs to evaluate the goal. Do you want to simply list the property for sale and see how the market responds or is the goal to list and sell the property? Our job, as listing agents, is to get the best price and terms for our seller clients. BUT, we can do this only if we have the right tools. When advising on pricing property for sale, we rely on a number of factors, among them, current market conditions, comparable sales, competing listings and our knowledge of the market. We evaluate a property within the context of the market in which it will be listed. We view a potential listing as a buyer would and urge sellers to try to do the same. If you overprice your property for sale it will take longer to sell than if you price it correctly in the first place. A property has the best chance of selling within the first 7-8 weeks of being listed. Numerous studies have shown that the longer a property remains on the market, the greater the likelihood is that less money will be received by the seller when they finally do sell. Here is what happens if a listing is overpriced (no mater how nice it is): Buyers and brokers dismiss the property and focus on other, more compelling, listings. Why would a buyer pay two million dollars for your home when comparable homes are selling for one million? A property needs to be the best value in terms of what it is competing with in order to sell. If there is no perceived value, the buyer will focus on the best price. When a property is aggressively overpriced it reduces the response from agents, limits qualified buyers and showings, negatively affects the ability for financing and remains on the market longer. Overpricing even encourages more overpricing as new listings come on the market whose owners compare their property to other listings rather than to properties that have actually sold. Remember - although the Nantucket market is strongly recovering - we have not yet gained back all of the value lost during the recession. To put it another way - average prices are not yet back to the levels of 2004-2005. And lastly, the one positive about an overpriced listing is that it will help sell those listings that are properly priced!
Last Minute Vacation Rentals There are still some great vacation rental opportunities, especially during June, July and September. As always, August has booked up quickly with many folks securing their rentals last fall and winter. There is currently availability in late August and we will likely have some last minute cancellations. We also have a number of homes that rent on a Friday or Sunday turnover schedule, making it easier to obtain car reservation on the ferries. We handle every type of property from a modest one bedroom cottage in Town to an estate property with pool, great views and full service concierge. And lots of options in between! Please check out our rental inventory at www.NantucketRealEstate.com or contact your Atlantic East Nantucket Real Estate agent for help planning a summer getaway.
SLEEPOVER FOR THE MOVIES? Attention Home Owners! Atlantic East is pleased to be a business sponsor of the 20th annual Nantucket Film Festival, to be held from June 24th to 29th, 2015. We are excited about the film line-up this year. The festival has a Home Stay program, for festival staff and invited special guests, and is seeking housing donations from our community. They need about 10 rooms and are seeking the use of guest cottages, apartments or rooms, preferably in, or close to, Town. In exchange, the home owner gets a tax benefit and passes to the Nantucket Film Festival events and movies. The NFF staff needs housing roughly from June 8th or June 15th until June 30th or July 1st. For invited special guests of the festival the dates would be roughly between June 22nd and 30th, or some portion thereof. The Home Stay program has a long history of success and, due to the current economy, is facing particular challenges this year. If you have a vacant cottage, house or room and would like to help out please contact the NFF directly at: info@nantucketfilmfestival.org or at their web site: http://www.nantucketfilmfestival.org/get-involved/offer-homestay/ Page 4
“THEY WERE SITTING IN THE AISLES” This year Nantucket’s Annual Town Meeting had record attendance of 1,040 people on the opening night, out of a total of 8,618 registered voters. Three articles in particular, each of which passed, likely drew the high attendance: the re-zoning article for Nantucket Cottage Hospital so that it can be built anew in the current location, the new elementary school ($46 million) and the new fire station ($15 million). All three articles passed without much discussion and the school and the fire station funding were also approved by a ballot vote at the annual Town election the following week. The ballot vote approved the exemption to Proposition 2 ½, the state law that limits the amount a town can increase the tax levy annually. Members of the community overwhelmingly supported funding both the school and fire department. Nantucket is the fastest growing county in the state of Massachusetts and it is clear that all three projects are overdue for our community. The second night of the Town Meeting dealt almost exclusively with zoning articles, many of which were denied. Proposed zoning changes intended to increase development density in several MidIsland neighborhoods went down in defeat. Voters were concerned about additional stresses to existing infrastructure and the impact of more growth on the environment. In an effort to help with the lack of year-round housing, Article 62, that allows a third, or tertiary, dwelling unit on some lots was approved. The size of the dwelling unit must be less than 550 s.f., it must be in the same ownership as an existing dwelling on the lot and it is only permitted in some zoning districts. Additionally, the number of tertiary dwelling units will be limited to 120 building permits within a calendar year. Voters also approved two articles related to bringing a funeral home back to the island. One article approved the lease of Townowned land for facilities including a crematorium. Article 53 would have re-zoned property owned by a private developer off of Old South Road that would have permitted the construction of 60 new homes on 15 acres. Although the article had a majority of votes, it failed to garner the 2/3 required for passage. The developer will now likely explore a 40b development - which requires a less rigorous permitting process in exchange for keeping a percentage of units being affordable. Lastly, an article banning the sale and use of helium balloons on Nantucket was passed. The article was intended to educate islanders and visitors on the potentially detrimental effects that balloons can have on our environment.
Nantucket: Home Prices 2001 - 2015 1st Q 2015
2500
2378
Avg Home ($OOO)
2271
Median Home ($OOO)
2210
2164
2103 2035 1945
2000
1970
1672
1666 1550
1500
1478
1726
1528
1495 1425
1373
1297 1187
1000
1275 1150
1190 1100
917 827.5
1013
970
1050
999
775
500
0 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
ll About the Bulbs: The Daffodil Festival, a weekend of events to celebrate spring, is being held this year from April 24 to 26, 2015. A full slate of activities is planned including the 41st Annual Nantucket Daffodil Flower Show at Bartlett’s Farm, the antique car parade and tailgate picnic in ‘Sconset, the dog parade, an art show and many other activities. There will be shuttle buses running from Washington Street in Town (across from the Greenhound Building) to Bartlett’s Farm for the flower show. Get your yellow and green on and let’s hope for some sunshine. Full schedule here: www.daffodilfestival.com
A
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2014
2015
Nantucket: Average Months on Market All Properties as of 1st Q 2015 12
10
8
6
4
2
0 Average Months on Market
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
8
7
8
9
7
7
7
8
11
9.75
8.5
8
9
7.5
6.5
5.1
ODDS & ENDS Nantucket has its own license plate! Initiated by the Nantucket Lighthouse School and through the herculean efforts of many Nantucketers and island non-profit organizations alike, Nantucket now has a community license plate. After a sustained 24-month effort, 1,547 applications were submitted to the state in February. The plates are now in the early production stage. The state will be contacting each applicant, in writing, to give them instructions on when, how, and where to pick up their plate. Expect to see the plates on cars around the island and the state later this summer (the state requires up to 6 months to produce the plates). Also, a number of license plates with lower numbers have been held back and will be sold at auctions. Would you like to have NI 228 or NI 257 on your car? How about NI 1? Stay tuned! Updates will be posted at: www.nantucketlicenseplate.org Looking for Something to do With the Kids? Nantucket Bucket is a great web site filled with information for families living on, or visiting Nantucket. The site is focused on activities for children at all times of the year. It is crisp and clear and easy to navigate. Check it out at: www.nantucket-bucket.com Direct Flights from Washington, D.C. Jet Blue will have direct non-stop flights this season from Washington Reagan Airport to Nantucket starting in June. The carrier will operate the service three times a week, between June 19 and September 6, with additional flights added for the Fourth of July weekend. For more information: www.jetblue.com
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
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 XI, Issue 2, Spring 2015