Fall 2024 Atlantic East Nantucket Real Estate Newsletter
N A N T U C K E T
AUTUMN
Atlantic East is celebrating 20 years in business, largely with the same group of professional agents that we started with. We are so grateful to be able to work with people that share our standards, and our love of and commitment to the island. Thank you to the people that have made this journey possible!
The fall season on Nantucket is one of the most beautiful times of the year here. Most everything is still open, it is easy to get dinner reservations, the water is warmer than it was in June and there is something special about the light and the spectacular sunsets. Nantucket’s version of leaf peeping manifests in our moors which change from summer green to purples, red and oranges as we usher in the off-season. The harbor has emptied out and it is the perfect time to get out on the water once more before it gets colder
Here’s the story on the Nantucket real estate market: as of the end of Q3, the market continues the trend of the past few years with a lower number of transactions selling but for considerably more dollars than in the past. During the pandemicdriven years of 2020 through 2022, the value of an average house on Nantucket increased 43% from $2.4 million in 2019 to $4.2 million at the end of 2023. To date in 2024, the average selling price of a home on Nantucket is $4,620,000, the highest it has ever been. And, although the number of sales are down: -6% from last year and -31% the year prior, prices are showing no softness. The average selling price of vacant land on Nantucket, becoming ever more scarce, rocketed this year to $3.02 million (+55%), with a median lot price of $2.55 million (+76%). Add to this the very low inventory coupled with the current interest rate climate, to understand the lower sales activity in some sectors of the Nantucket real estate market. In the decade prior to 2020, Nantucket averaged about 500 transactions annually. In 2022 there were 825 sales for $2.3 billion dollars. In 2023 there were only 333 transactions (for $1.1 billion dollars) and to date in 2024 there have been only 218 sales (for $880 million dollars).
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MARKETNEWS
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The Nantucket real estate market is on track to break $1 billion again in 2024 (as we did in 2017, 2018 and 2019). Again, there is no indication that selling prices will moderate any time soon. In the years prior to the pandemic, the average number of properties listed for sale, at any given time, on Nantucket was 350-400 (residential, land and commercial). Last year at this time, there were only 129 listings; today there are 207 (+37%). The reasons people decide to sell their Nantucket property are varied. Many of them have to do with a change in life circumstances, often beyond their control. Although the year-round population has been steadily climbing for the past 10 years, others who live on-island are, for many reasons, deciding to sell and relocate. With the nearly 5-year assault on the short-term rental of one's private home, there are people who have decided to sell because without the ability to rent, it is impossible to afford to keep their home on Nantucket.
Many sellers have aggressively priced their properties, perhaps to test the market or because they believe that the market has not changed since 2021. This is not the case. Much of the pandemic-driven activity was impulsive, as people fled to communities they perceived as safer. If you are a seller who wants to sell, it is extremely important to price your property for the current market and not some past or future one.
When evaluating the market activity, it helps to look at different price sectors. The high-end of the market (over $10M) is doing well with 15 closings so far in 2024. There have been 11 sales between $7-10M; 27 sales between $5-7M; 54 sales between $3-5M (the most active sector); 42 sales between $2-3M; 35 between $1-2M and 22 sales for less than $1 million dollars. Nearly 50% of all sales this year have been over $3 million dollars.
The average time on the market is still low at 5 months and the average selling price, as a percentage of list price, is now 92%. In 2021 and 2022 it was 94%. The average selling price, as a percentage of assessed value, has dropped now to 137% from 152% last year. As has been typical, the largest number of sales occurred for properties located in Town, followed by the Mid-Island, Sandpiper Place, Sconset and Surfside. Stay tuned for our annual wrap up at the end of this year!
NANTUCKETREALESTATEATAGLANCEYTD as of Q3
Currently 207 active listings, 33 price reductions in past month, 80 pending sales, 218 closed salesYTD for $881 million, average residential price is up 8% and average land price is up 55% from 2023, average time on market is still 5 months, the market will exceed $1 billion for 2024.
2024 Sales by Price Sector, as of Q3
$500K-$1M
Nantucket: Home Prices
As of Q3 2024
SPECIALTOWN MEETING UPDATE
Nantucket held yet another Special Town Meeting in September, the focus of which was more articles related to short-term rentals. There were originally 6 citizen articles submitted which resulted in the Select Board forming a group of the article sponsors to try, once again, to come up with a “compromise article” (Article 1), for consideration at STM. Nantucket has already adopted regulations for the short-term rental of one’s private home including limiting properties strictly owned by corporations from renting on a short-term basis, institution of a local rental registry (that has had challenges getting up and running), which includes a local hotline where people can report bad behavior (2 calls all summer, only one of which was about a short-term rental property). Article 1 failed to garner the 2/3 votes necessary to pass and it is clear that the community is not interested in any more regulations.
One has to ask what exactly is the problem that we are trying to solve? Of the 12,600 dwelling units on Nantucket, only 1,758 owners filed with the state for renting on a short-term basis in 2022, the last year for which this information was available. We are looking forward to more data in the first quarter of 2025, including the updated information from the Nantucket Association of Real Estate Brokers which will show a steady decline in the number of rentals since the height of the pandemic. Short-term rentals are not the cause of all of Nantucket’s problemsthere is a traffic issue on-island in February. What is driving everything is the popularity of Nantucket; people want to spend time here. The vast majority of houses on Nantucket are owned by people who do not live here year-round and these properties need a high level of service (by the people who do live here year-round). Nantucket’s economy is, and has been for well over 100 years, based on tourism.
Zoning Board Supports Vacation Rentals
In the past 3 years, there have been four lawsuits filed by neighbors against neighbors in various zoning districts on Nantucket. The suits were brought by individuals and were largely supported and funded by a local non-profit calledACK-Now The basis of each suit has been that the owner of the property is operating a “commercial short-term rental” in a residential zoning district. The first of the suits, Ward vs. the Grape family and theTown of Nantucket, was enjoined by a second suit Quick vs. Keith, and made its way last winter to the Massachusetts Land Court where the judge, in his ruling, stated that Nantucket's zoning by-law does not expressly address (permit or disallow) short-term rentals, either as a definition or as a defined use. In doing so, he remanded the case back to the Nantucket Zoning Board ofAppeals.
The five member ZBAmet multiple times over the summer and heard testimony from various community members and attorneys on the long and well-documented history of vacation rentals on Nantucket. In September, the ZBAvoted 4-1 in favor of the decision that, in these two cases, the short-term rental of the homes qualified as an accessory use and is allowed under Nantucket’s zoning by-laws.The decision was immediately appealed in the case of Ward vs. Grapes andTown of Nantucket. And it was not appealed in the Quick vs. Keith case. It is important to remember that these individual defendants had to bear the time, stress and legal cost of these lawsuits.
The Nantucket S.T.A.R. program stands for “sports and therapeutic accessible recreation.The organization, founded in 2003, is focused on offering inclusive recreational activities that support and celebrate diverse strengths and abilities through collaborations with families and community partnerships.
The founders, Renee Gamberoni and Max Goode, recognized a need for adaptive programs and recreation for individuals with special needs. Now, alongside their peers, individuals on Nantucket with diverse needs have access to quality sports and recreation.
The organization’s therapists, teachers, special educators and dedicated volunteers help individuals with special needs participate in a wide variety of sports, activities and recreational experiences in a supportive environment. And they partner with other island organizations to make this possible. One example is the partnership with Nantucket Community Sailing who has long been supporting S.T.A.R. in an effort to get more people out to enjoy being on the water.
For more information on how you can support this important program, either through your time or financial assistance, please go to https://nantucketstar.org/. Thank you!
Vacation RentalTips for Owners
With another rental season behind us, this is a good me to review the things we did right and the things we could improve on. A recent survey by Booking.com highlights the 5 things most important to vaca on rental guests. They are free parking, freshly made beds, regular cleaning, 24-hour check-in and smart TV or streaming services. What this tells us is cleanliness, and convenience top the list for our guests. If you haven't replaced your sheets in a year or two, now is the me. Consider upgrading to high quality sheets. It's a great return on your investment when a guest slips into a comfy bed at night a er a long day of enjoying the beach or other island ac vi es.
A third of all travelers also wanted to hear the host's recommenda ons for local restaurants, events, and ac vi es. If you haven't already, adding a sec on in your house book or providing local maps and guidebooks can go a long way to show the guest you want them to enjoy their stay. The last couple of years we have seen a no ceable decline in the number of rentals on the island and regionally. With the rise of infla on and costs associated with ge ng to and staying on the island, its possible tenants have started to see a diminishing value in a Nantucket vaca on. Li le touches here and there can make a big difference in making guests feel welcome in our homes and on the island we all love.
PLEASE REMEMBER TO REGISTER WITH THE NANTUCKET SHORT-TERM RENTAL REGISTRY BY NOVEMBER 1, 2024 if you are doing rentals of less than 32 days in 2025. Contact the Town’s vendor, GOV OS at or by phone blt.str.support@govos.com at (888) 751-1911. If you need addi onal help please contact the Nantucket Health Department at health@nantucketma.gov.
Nantucket: Pace of Sales 2023-2024 As of Q3
New RentalTax - Community Impact Fee
The Town has voted to implement a Community Impact Fee of 3% on the transfer of occupancy of any short term rental units owned by an operator with two or more units located within the same city or town, that are not owner occupied.
st As of October 1 , 2024, the fee will be calculated and collected with other short term rental taxes from the tenant and remi ed to the state by Atlan c East for all applicable rentals done through our company.
Something important to note is that this only applies to units owned by the same en ty. If you have mul ple proper es, each under different ownership (LLC, Trusts, etc.), your guests would be exempt from this tax. Please reach out to our Rental Manager, Erikka Perkins, with any ques ons you may have.
NO WIPES IN THE PIPES: David Gray, Director of the Nantucket Sewer Department, recently reminded the community not to flush wipes into the Town or Sconset sewer systems (even if the package says they are flushable). They can snag and cause a pipe blockage. The Town has had to deal with between 2,500 and 4,000 lbs. of wipes in one week that have caused back-ups and need to be removed which is time-consuming and costly.
OPEN THE DOOR TO NANTUCKET REAL ESTATE: The Nantucket Association of Real Estate Brokers (NAREB) has published a resource booklet to help buyers and sellers to more easily navigate the Nantucket real estate market. There is wealth of information in it about everything related to the purchase or sale of a property on Nantucket. Open the Door is available at https://nantucketopenthedoor.com/ or just ask your favorite Atlantic East agent if you would like a printed copy.
A t 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 T A T E
Penny Dey, GRI, ABRM, Broker/Owner
Linda Bellevue, GRI, CBR; Heidi Drew, ABR, RSPS, SRS; Peter DuPont; Alison K. Forsgren, SRES; Angel Conrad Frazier; Mary D. Malavase, GRI, ABR, RSPS, SFR; Jane Miller, ABR, RSPS; Erikka Perkins, Rental Manager; Meg Ruley, ABR, RSPS; Lisa Sherburne, ABR, RSPS; Melinda Vallett; Geri Walker, RSPS, SFR; Mary O’Donnell, Office Manager; Yesenia Valer, Office Assistant
We believe in doing one thing and in doing it well!
