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S P R I N G We are especially happy to welcome spring this year although there will be no Daffodil Weekend for the second year in a row. Leadership at the Town and Nantucket Cottage Hospital have stated that we are in the 24th mile of a marathon and the entire community must continue to pull together for the safety of all. The island is beautiful right now with the daffodils, tulips, and forsythia in full bloom. We are grateful for the longer days and real warmth from the sun and our increasing ability to move around more freely while maintaining safety protocols. The numbers are in the for Q1 and, not unexpectedly, show an increase of 95% for the number of sales (156) over one year ago and an increase of 89% for the dollars ($350 million+) represented by these sales. It is especially astounding when one realizes that the economic impacts of the pandemic started to be evident in mid-March of 2020. Nantucket had an unprecedented year in real estate in 2020 with $1.895 billion dollars in sales (679 properties) compared to just over $1 billion in 2019 (474 properties). This year's Q1 closings of $350 million eclipsed last year's $152 million. This is surprising given the low amount of inventory for sale. In a “normal” market there are 300 – 400 listings – right now there are fewer than 120 properties listed for sale on island. For context, at the height of the last recession in 2009 there were 650 properties on the market. When a property comes on the market now it is not unusual to have multiple offers. Buyers who are on-island and do not require financing are at a big advantage compared to those who are less nimble. It is a challenging climate for property appraisers who rely heavily on historical sales data. We do expect to see inventory increase as we head into the spring market. Continued on Page 2...
M A R K E T
N E W S
The average selling price of a property on Nantucket is $2,248,000. The average selling price of a house is $2,730,000 and the median house price is $2,149,000. Vacant land is selling, on average, for $1,170,000 and the median price of land is $1,073,000.
The time on market is down to 8 months from 9 months in 2020 and 10 months in 2019. Properties are currently selling for an average of 92% (-1%) of list price and for 129% (+5%) of assessed value at the time of sale. Properties in the highest demand include those that are in move-in condition, new or renovated and with a high level of amenities such as swimming pools, water views, beach access and outdoor space. There were many properties sold by local builder/developers in 2020 and these folks are now facing the challenges of finding the next project. Town and the Mid-Island area remain the most active location sectors of the market with 28 and 29 sales respectively followed by South of Town (17) and 'Sconset (15), Surfside (10), Tom Nevers (9), Madaket/Fisher's Landing (8), Cliff (6), Miacomet (5), Pocomo and Cisco/Hummock Pond (4 each), and Quidnet and the Middle Moors (3 each). There have been 3 or fewer sales in Q1 in Brant Point, Dionis, Madequecham, Monomoy, Naushop, Polpis, Shimmo and Wauwinet. Buyers continue to want to be on Nantucket and other places that are perceived to be safe and that have access to the outdoors. Mortgage rates are more likely to rise than fall throughout the rest of this year as the economy continues to recover with the rollout of the vaccines. However, the rates are still hovering in the 3% range for long-term borrowing which is historically very low. We hope to see you on-island soon and are looking forward to this summer and all that we will soon be able to do!
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Why are Property Taxes so Low on Nantucket? People are often surprised at how low property taxes are on Nantucket relative to the value of real estate. The primary reason for this is that over 80% of our taxes are paid by non-resident taxpayers who are not using Town services on a year-round basis. Every three years the State Department of Revenue requires a revaluation of all the properties on-island to establish property values for the purpose of fair distribution of the tax burden. The assessed value is determined by activity in the real estate market and general economic conditions for the three years prior to the revaluation project. Factors that are examined for each property are: location, size, quality of construction, condition, topography, utilities, and zoning restrictions. The data collection phase of the project includes physical inspections of the exterior of properties. Appraisers then view the collected data and apply determining factors of sales analysis to come up with a value for each property. Assessed values for the entire island are available to the public. A revaluation does not necessarily increase property taxes. If the values go down, the rate goes up and the converse. Simply put, the property tax revenue for the Town of Nantucket is established by calculating the total assessed value by a property tax rate (currently $3.63/$1,000 for the residential rate). For instance, if you own a property assessed at $1,000,000, your property tax bill would be $3,630 annually.
Coastal Resilience Plan The Nantucket Community has officially started to work on a Coastal Resilience Plan. From the Town's web site: “The Coastal Resilience Plan (CRP) draws on the cherished built and natural heritage of Nantucket to create a community-supported roadmap to implementation for a series of layered flood control and adaptation approaches that lessen the loss from storm surges and help the community adapt to rising seas and eroding coastlines.” The plan will be driven by scientific studies and inclusive and equitable engagement of all community members and it is slated to be completed by the fall of 2021.As an island, we are aware of the challenges presented by climate change. The plan will analyze risks to island homes and businesses, public infrastructure, the economy, civic spaces, and historic and natural resources and propose specific interventions for reducing long-term risks and increasing resilience. The team recently launched a tool called the Irys App - which helps to facilitate two-way engagement as they move forward with the plan. Nantucket is the first place to be able to use this tool. Users will be able to provide input by location and category, find events, view project updates, and build community. For more information: Town of Nantucket Coastal Resilience Plan Also check out this link to a comprehensive FEMA study done on Nantucket in 2020:
N an tu cke t: 1st Q Co m p ariso n Sales D o llars (0 0 0 's)
$4 00,000
$3 50,000
$3 00,000
$2 50,000
$2 00,000
$1 50,000
$1 00,000
$5 0,000
$0
2006
2007
2008
D ollars 1st Q . (000's)$ 229,730 $171,902 $150,468
2009
2010
2011
2012
2013
$53,322
$108,095
$73,874
$96,132
$74,334
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2014
2015
2016
2017
2018
2019
2020
2021
$174,073 $156,176 $196,271 $184,719 $297,448 $151,934 $185,339 $350,703
UNPRECEDENTED DEMAND We are seeing historic and early demand for vacation rentals for the 2021 season, likely because pandemic fatigue as well as a desire to gather with family and friends now that widespread vaccine distribution has made it safer to do so. We were at 90% of our total 2020 bookings…at the beginning of April! Many homeowners, who had lease commitments in place in 2020, pulled their homes off the rental market for the 2021 season to use them. And many of the people who purchased homes on Nantucket last year are also choosing to use them rather than renting them out. This has contributed to a further lack of inventory during an exceptionally busy year. Given the optimistic outlook for the summer, we hope some of those homeowners will reconsider. If you, or someone you know, owns a home in Nantucket and you are considering renting it for any portion of the year, whether it be a week or the full season, please reach out to us. We pride ourselves on orchestrating smooth sailing rentals. If you are a tenant interested in spending some time on Nantucket this year, please consider planning your stay before or after the height of the summer season. September and October are two of the most beautiful months to be on island: everything is still open, and the pace is less intense than during the height of the season. Otherwise, the more flexibility you have regarding location, dates, size, condition, and price, the easier it will be to find the right vacation home for you.
Oyster Farm Tour
New Air Service to ACK According to the airline industry review website, thepointsguy.com, American Airlines plans new non-stop service from Chicago and Philadelphia to Nantucket starting in late June. The Points Guy reports: "In addition to an ORD flight, Nantucket will get two new and expanded nonstops, one from the carrier's Philadelphia hub and another operated by JetBlue from Newark as part of the new Northeast Alliance”.
Looking for something different to do this summer? How about a private oyster farm tour! The tours will be Monday through Fridays at 3 pm during the months of July and August (subject to any COVID regulations). This is an opportunity to get out on Nantucket Harbor by boat and support the Nantucket Land Council at the same time. Email Meg@NantucketLandCouncil.org for more information.
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Can They Really Do That? ACK-Now has submitted Article 90 to our Annual Town Meeting that seeks to restrict, limit, and regulate short-term rentals. In this country the government has four powers over private property. They are taxation, eminent domain, and police powers (which include such things as zoning, rental controls, building and fire codes and regulation of safety hazards) and, if you die without a will, escheat. Article 90 clearly should have been submitted as a zoning article and not as a general by-law as the proposed regulations fall under police powers which impact both the use and the value of private property. It is crucial to base such a far-reaching community decision on factual information. WHY SHOULD IT BE A ZONING ARTICLE? Article 90 asks the town, through a general by-law, to impose additional police powers on the use of private property. The article seeks, among other things, to limit the amount of time one can rent a private home, how many people can sleep in a bedroom and the number of cars a guest may bring. Because the article was submitted as a general by-law it only requires a simple majority vote at ATM to pass, not the 2/3 super majority required to pass a zoning article. This is also important because, if the article is voted down, it can come back next year. And the year after. Had it been submitted through the more appropriate channel of zoning, if voted down, it would not be able to come back, unless substantially different, for at least two years. In addition, a zoning article provides for potential grandfathering provisions which is not the case with a general by-law article. RENTALS OF PRIVATE HOMES: There is a long and enduring history of the rental of private homes on Nantucket, homes owned by both seasonal and year-round residents. The income generated by renting one's home helps to offset the high cost of owning and maintaining a home on Nantucket. Most importantly, for many of our visitors, it is also the only way that they can ever afford to experience Nantucket. Restricting the number of weeks (to 6.4 weeks for off-island owners) that a property can be rented will make the rental rates rise, making the island even less accessible. The article also treats year-round and seasonal owners differently which, at the very least, seems unfair. HOW DOES ARTICLE 90 INCREASE AFFORDABLE HOUSING? There is no linkage, or evidence, that demonstrates a connection between Article 90 and any increase in affordable housing stock on Nantucket. A high-end 4-bedroom home in Surfside with a pool will never be affordable housing on Nantucket. “INVESTORS ARE BUYING UP YEAR-ROUND PROPERTIES”: This is not accurate. A number of year-round people have chosen to sell in the past 5 years for a variety of reasons which is their right in a free-market society. Of the over 2,000 short term Nantucket rentals registered in MA, less than 1% are owned by “off-island investors” (defined as those with 3 or more properties). The Town Assessor's Office has confirmed that the ratio between year-round owners and seasonal owners remains at 20/80 which has been consistent for the past 5 years. “ALL THE MONEY IS GOING OFF-ISLAND”: This is not factual. A rental property generates work for local caretakers, cleaners, landscapers, tradespeople, rental agents, pool people and more. There is overwhelming evidence that owners who rent their properties out on a short-term basis support the local economy in a significant way. WHAT IS ARTICLE 90 REALLY ABOUT? Is it really about quality of life issues such as excessive noise (we already have a by-law for this that is rarely enforced) and overcrowding? Is it about not wanting any more visitors or cars on the island? Is it about wanting to control private property rights because we are uneasy about the amount of visible change on the island in the past few years? Or is about wanting Nantucket to be the “way it was when I got here”? A local advocacy group called Nantucket Together has been formed to make sure that the community has the real facts. The membership of Nantucket Together is over 1,300 people and growing. Please consider supporting them at www.NantucketTogether.org. It is very important that, if you are registered to vote on Nantucket, you attend ATM on June 5, 2021. If you are not registered to vote on-island, please encourage your island friends and service people to attend and have their voices heard. The full text of Article 90 can be found here.
I Thought That Was Covered by my Homeowner’s Insurance! Even the most comprehensive insurance policies do not cover every possible property mishap. Read your policy and ask questions. Here are some major items that are not typically covered: Flooding, even drain and sewer backups, erosion, nuclear hazards, war or government action, power failures, landslides, earthquakes and sinkholes, damage from birds, vermin, mold or fungus and neglect or wear and tear. Some of these risks may be covered by purchasing an endorsement to the policy. Flood insurance is a good example and homeowners are also advised to get windstorm insurance if located in an area susceptible to hurricanes. Page 5
Nantucket: Pace of Sales 2020-2021 As of 3.31.2021 140
120
100
80
60
40
20
0
Jan 2020
Feb
Mar
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan 2021
Feb
Mar
No. Properties OP
10
13
5
2
8
45
37
75
59
45
26
20
17
24
20
No. Properties PS
25
13
17
4
18
53
63
71
64
88
57
46
24
30
28
No Properties Sold
37
21
17
21
16
15
61
46
115
101
80
104
54
39
59
New Listings
22
30
27
23
63
82
126
103
81
77
54
18
26
20
40
The Great Healthy Yard Project We now know that very tiny amounts of certain chemicals will adversely affect our health and environment. Take the Healthy Yard Pledge: “I pledge to take care of my yard without synthetic pesticides, weed killers and fertilizers, except on rare occasions to resolve an infestation or to improve habitat for native plants and wildlife. I also pledge not to throw pharmaceuticals or chemicals down my drains or toilets.” Join the thousands of homeowners and the Garden Club of America to commit to this life saving project. Healthy Yard Pledge: http://tghyp.com/the-garden-club-of-america-ischarging-ahead-with-the-healthy-yard-pledge/
Welcome Geri Walker, Sales Associate A Nantucket local since 1975, Geri was raised working in family-run hotels in New Hampshire, Newport, Rhode Island and Nantucket. She spent senior year of high school living at a temple in Japan and graduated from UMASS with a degree in Japanese and Journalism. Geri began a career in media in New York. In 2008, with a budding family and the nagging desire to live closer to nature, Geri made the decision to leave behind her daily commute to Rockefeller Center and the Brooklyn Chocolate factory she lived in, to return to the shores of her youth, Nantucket. Her real estate work began with an administrative position, and after 8 years has evolved into a sales and rental agent position. Geri finds her background in hospitality and media and deep knowledge of the island inform her ability to get to know her clients and assess their real estate interests. Twelve years since returning home, you will find Geri in the off-season involved in community events, caring for her chickens and goats, home-cooking and canning, enjoying social media and photography, and exploring the Nantucket conservation trails with her family and dog.
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 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 2, Spring 2021