SUMMER
We are halfway through 2024 and the most salient comment about the current real estate market on Nantucket is this: “It's not 2021 anymore.” The acute pandemic years pushed the number of sales and prices to new levels and, as a result, we've been in a time of very low inventory and very high prices since 2020. This, coupled with the current interest rate climate, has slowed the activity level in some sectors of the Nantucket real estate market. In the decade prior to 2020, Nantucket averaged about 500 transactions annually. This number shot up to a high of 825 sales in 2022, for $2.3 billion dollars. In 2023 there were only 333 transactions (for $1.1 billion dollars) and in the first half of 2024 there were 113 sales (for $463 million dollars). What has not declined since 2022 is the price of real estate on Nantucket. It is helpful to remember that, thankfully, nearly 60% of the island is preserved in perpetuity, much of it for public use, which has put enormous economic pressure on the other 40%.
The average house was selling for $2,440,000 in 2019; today it is $4,535,000, an increase of 46%. The average price of a vacant lot in 2019 was $1,453,000; today it is $3,440,000, up an astounding 57% in 4 years. There is no indication that selling prices will be moderating any time soon. However, if historical trends hold true, we are still on track to exceed $1 billion in sales this year, as we did in 2017-2019 and last year.
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). Lat year at this time, there were only 129 listings; today there are 230 (+44%). The reasons people decide to sell their Nantucket property are varied.
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MARKETNEWS
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Most of the reasons people sell have to do with a change in life circumstances. Although the year-round population has been steadily climbing for the past 10 years, there are others who are, for many reasons, deciding to sell and relocate. With the 4-year assault on short-term rentals, there are people who have decided to sell because without the ability to rent, it is impossible financially to keep their home on Nantucket..One recent trend worth noting is the number of price reductions, which is high for this early in the summer (44 in the past month alone). We typically start to see some price reductions around the beginning of August. Many sellers have aggressively priced their properties, perhaps with the belief 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
When evaluating the market, it helps to look at different price sectors. The high-end of the market (over $10M) is doing well with 8 closings so far. There have been 4 sales between $7-10M; 13 sales between $5-7M; 30 sales between $3-5M (the most active sector); 23 sales between $2-3M; 18 between $1-2M and only 9 sales for less than $1 million dollars. The average time on the market is still at a very low 5 months (due largely to the lack of listings) and the average selling price, as a percentage of list price, remains at 91% (same as in 2023 - in 2021 and 2022 it was 94%). The average selling price, as a percentage of assessed value, has dropped now to 133% from 152% last year. As has been typical, the largest number of sales occurred for properties located in Town, followed by the MidIsland, Sandpiper Place, the Cliff and Sconset. We look forward to seeing how the rest of 2024 shapes up.
Year to Date as of Q2: 230 active listings, 44 price reductions in past month, 56 pending sales, 113 closed sales, for $463,071,000, average residential price is up 6% and average land price is up 76% from 2023, average months on market is 5, on track to exceed $1 billion for 2024.
ZONING BOARD and 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 but were largely supported and funded by a local non-profit called ACK-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 Grapes and the Town of Nantucket, made it’s way last winter to the Massachusetts Land Court where Judge Michael Vhay, 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 of Appeals.
The five member ZBA met in early June to hear testimony from the Grape family and their attorneys and from the attorneys for the plaintiff, Catherine Ward. They also heard testimony from various community members, much of it focused on the long and well-documented history and tradition of vacation rentals on Nantucket. The ZBA continued that meeting until last week where additional testimony was shared and a second enjoined case, Quick vs. Keith, was also heard. After nearly 4 hours of testimony, they closed the public hearing and began deliberations. The majority of ZBA members wanted to see a draft written decision prior to voting on it. It was clear that three of the five members recognized that the Grape’s and Keith’s renting of their properties qualified as an accessory and is allowed under Nantucket’s zoning by-laws. It is anticipated that the five regular members of the ZBA will take an official vote at their next meeting on August 15, 2024.
Nantucket’s Short-Term Rental Registry
Requirements for Owners who rent on a short-term basis (less than 32 days):
· Owner must obtain a Certificate of Registration for 2025 by November 1, 2024.
· The annual fee has been set at $250 per unit for 2025.
· There is now a functioning hotline this summer to handle any issues related to noise and parking.*
· Owner must provide theTown with the name and contact information for an individual who can respond to the property at any time within two hours.
· Owner must attest that there is insurance for liability coverage.
· Occupancy is limited to 2 people per legal bedroom plus 2 others.
· Owner must ensure that parking does not create a safety issue.
Please , who has been hired by theTown, with any questions. contact GovOS Phone: (888) 751-1911 (M-F 9-5)
COMMUNITY SPOTLIGHT: Nantucket Resource Partnership
Nantucket Resource Partnership (NRP) is a 501(c)3 nonprofit committed to the creation of a truly food-secure community Success will be achieved when Nantucket has progressed from a system of independent food programs to a fully integrated and sustainable food security system. NRPis well on the way to achieving this goal. Focus areas include:
RaisingAwareness
Drawing attention to food insecurity in our community is crucial to drive action and garner support for our cause. NRPhas already made, or is scheduled to make, presentations to dozens of island organizations.
Develop Partnerships
NRPrecognizes the power of and need for collaboration to achieve our mission. NRPhosts quarterly Food Sector Partner meetings where progress is reviewed and input is solicited from various stakeholders. Our partners include Nantucket Food Fuel & RentalAssistance (the Food Pantry), Nantucket Public Schools; Elder Services (Meals on Wheels); Our House (teen meals); Women, Infants and Children (WIC);The Warming Place (meals for the homeless); St. Paul's Church (prepared dinners); and others.
Mobilize and Share Resources
Securing adequate resources is essential to achieve our vision of an integrated and sustainable food security system. NRP helped develop two programs. Nourishing Nantucket provides a weekly box of fresh locally sourced produce for 80 families. Fresh Connect is a debit card program that pays for fresh produce at checkout at the Stop & Shop. NRPalso coordinates collaborative grant writing to bring financial resources to food programs.
Research andAnalyze Data
To improve our existing food security system, we need to better understand the existing landscape to identify any gaps in service and to plan for system improvements. NRPhas developed a community scorecard to evaluate how Nantucket is doing at addressing food insecurity and to analyze service gaps to suggest improvements to the food security system.
Integrate Program Management
NRPunderstands the value of program integration to improve the efficiency and effectiveness of the food security system. NRPdeveloped a program referral platformFood First - that has already helped human service providers make nearly 1000 referrals to island food programs by helping them answer a simple questionnaire (see code to right). To learn more and support their work: or Instagram: www.TheNRP.org @resource_partnership
BEHINDTHE SCENES...
Don't forget, when you list your home for rent with Atlan c East, we will handle all the collec on, filing and remi ng of the short-term rental tax to the state of Massachuse s on your behalf. Once you have registered your home and provided us with a copy of your registra on cer ficate number, you do not need to worry further about the excise tax on your rental home unless you are booking rentals on your own. Also, please remember to post a copy of the rental cer ficate somewhere obvious in your home as required by state law. If you have any ques ons about the process, Erikka Perkins, our Rental Manager is a great resource (Erikka@NantucketRealEstate.com).
Atlan c East makes it a policy to check every home prior to each tenant's stay, to ensure that the home is ready for their arrival, and a er every departure to make sure the home has been le in good condi on and is ready for the next tenants.
Having advocates on island can be extremely valuable for homeowners when things don't go as planned. Maybe you've double booked your home, or a cleaner didn't show up as scheduled or your air condi oning fails during the ho est day of the summer. These are all examples of crises that our agents have handled. Atlan c East's agents have an average of 30+ years in the real estate market and have spent that me developing rela onships with vendors and service people we can contact on your behalf when something goes wrong. A seamless rental transac on is always our goal, but there's much prepara on that goes on behind the scenes to make that happen.
Lot Prices As of Q2 2024
Nantucket:
$500K-$1M
$1-$2M
$2-$3M
$3-$5M
$5-$7M
$7-$10M
Over $10M
THISANDTHAT
Wannacomet and Siasconset Water companies have completed their Water Quality Reports for our public water sources which can be viewed online at www.Nantucket-ma.gov/WWCO2023. The reports identify the source of Nantucket’s drinking water, any identified contaminants and what the potential harmful effects of these contaminants are. To obtain hard copies contact the Water Company at 508-228-0222 or by email at water@nantucket-ma.gov. You can also stop in to their office located at 1 Milestone Road, near the rotary
As an office, we are committed to serving our community in a variety of different ways. Broker Meg Ruley serves on the board of MUSACK, whose mission is to give kids and teens a voice through music by providing guitars, drums, and support for music teachers - wherever the need arises. Broker Lisa Sherburne has been a strong supporter and participant in Swim Across America which funds cancer research and has expanded cancer treatment options for people living here on Nantucket. Atlantic East is proud to support these and many other non-profits that improve life for islanders.
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!
82 Easton Street Nantucket MA 02554
508.228.7707 NantucketRealEstate.com
