N A N T U C K E T
WINTER
We started Atlan c East late in 2004 and have been celebra ng our 20th year in business since last fall. We are going to con nue to celebrate right through this year with gra tude for all of our trus ng and loyal clients who love Nantucket as much as we do. We love what we do and think it shows in our high professional standards and commitment to the community and the business of real estate. Nothing part- me here: our dedicated agents are full- me and year-round. Please reach out to your favorite Atlan c East agent if there is anything we can do for you in 2025!
The real estate market on Nantucket in 2024 performed much the same as it did in 2023, except with higher prices. Proper es sold for an average of 17% more than they did in 2023. In 2024, there were 341 sales (+2%) for a total of $1.36 billion (+17%). The average sale (residen al, land, commercial, condo, co-op) increased 14% to $3,995,000. The average selling price of a house is now $4,566,000 (+7%); the median home price is $3,648,000 (+22%). The average selling price of vacant land on Nantucket, becoming ever more scarce, was $2,701,000 (+38%); the median lot price was $2,345,000 (+62%). Prior to the pandemic years, there were approximately 500 sales annually on Nantucket. The lower number of sales in recent years is due to a number of factors including fewer lis ngs, owners keeping their proper es to use them, and the recent trend of seasonal owners spending more me on-island in the off-season. In spite of some recent improvement in interest rates, they remain higher than they were and this is very impac ul for some buyers due to the high prices on Nantucket.
In 2024 more than 50% of all sales on Nantucket were over $3 million. More than 25% of all sales were over $5 million. And fewer than 10% of sales were under $1 million. For decades, Nantucket has been challenged by housing our year-round community members, but it has never been as difficult as it is today.
The least expensive residen al sale in 2024, not restricted for affordability or subject to coastal erosion, was a townhouse, in need of upda ng, located in Madaket with 3 bedrooms and 2 baths that sold for $640,000. The highest price paid for a residen al property was $26 million paid by the Nantucket Islands Land Bank for 41 Jefferson Avenue, a .94 acre lot with mul ple dwelling units on it, located on Nantucket Sound. Con nued on Page 2...
MARKETNEWS
(continued from page 1)
The average me a property is listed for sale on Nantucket is s ll 5 months, the same as it was the past two years. The average selling price, as a percentage of list price is 91%, the same as it was in 2023. And, the average selling price, as a percentage of the property's assessed value, is 136%, down from 152% in 2023 and 181% in 2022.
Today's buyers are willing to pay a premium for properties that are in pristine, move-in condition with a high level of amenities. Properties that are close to Town, or the water and with views remain popular. Some buyers are willing to buy land and build but one needs to be patient as it is a costly and time-consuming process to build on Nantucket. There is no sign that real estate prices on Nantucket will be moderating anytime soon.
The largest number of sales in 2024 were, as usual, located in Town (65), followed by the Mid-Island (50), Sandpiper Place (38), Sconset (23), Surfside (19), Tom Nevers (17), Brant Point, Cisco/Hummock Pond, Cliff (15 each), Madaket (14), West of Town (13), South of Town (11), Polpis (8), Wauwinet (6), Miacomet and Naushop (5 each), Dionis and Monomoy (4 each). There were 2 or fewer sales in Beach Plum, Fisher’s Landing, Madequecham, Middle Moors, Nashaquisset, Pocomo, Quiase, Quidnet, Shawkemo, Shimmo, Squam and Tuckernuck.
There is no question that the current market is different than that of the pandemic years. 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 market. If you are a buyer, you may need to take more time, than in the past, to find the right property. In either case, one should work with an island professional who is informed, current on the market and knowledgeable about local regulations and permitting, and the things that make Nantucket special and unique.
NANTUCKET REALESTATEATAGLANCEYTD as of Q4 2024
Currently 148 active listings, 12 price reductions in past month, 28 pending sales, 341 closed salesYTD, average residential price is up 7% and average land price is up 38% from 2023, average time on market is 5 months, and the average selling price, as % of list is 91% and 136% of assessed value.
Nantucket: Home Prices
Community Spotlight: Habitat for Humanity
The Habitat for Humanity mission statement states, “We build hope for families, our community, and future genera ons. In crea ve partnership with people in need and the Nantucket community, we build and renovate homes for ownership. We make a posi ve difference in our world by crea ng opportuni es for volunteers and family members to work together to secure our shared future.”
On Nantucket, most of the land for Habitat homes has come from the Town. Habitat provides ownership opportuni es by providing 0% interest mortgages over 30 years, with no down payment or mortgage insurance required making the payments affordable. The homes are deeded permanently affordable.
The price and the homeowner selec on is strictly managed by the Commonwealth of Massachuse s Execu ve Office of Housing and Livable Communi es, (EOHLC). Homeowner selec on involves a supervised lo ery for families earning less than 80 % of the current Area Median Income (AMI). In 2024 the 80% number was $109,650. The latest lo ery for 4 homes on Wai Drive had 35 families qualify. The price set by the EOHLC for this lo ery was $301,000 for the 3 bedroom, 3.5 bath home and $254,000 for the 2 bedroom, 2.5 bath homes. These homes have been added to the Town’s Subsidized Housing Inventory list (SHI list).
Being able to buy a Habitat home enables residents to have stability, to save money and to plan for the future. In addi on to income, residency and need requirements, owners must contribute at least 350 hours of their me to help get their house built. A number of local contractors have been, for many years, discoun ng their services to help make the dream of ownership a reality for fellow islanders.
By the end of 2025 there will be 22 Habitat houses on Nantucket, with the majority of them - 15 - built since 2014. The homes are 2 and 3 bedrooms, some are free-standing and some are a ached duplex units. The homes are sca ered throughout the island in residen al neighborhoods, usually near town water, sewer and transporta on and are providing housing to over 100 year-round people. One of the most interes ng points is that none of the Habitat homes have changed hands in the past 24 years. Habitat owners are, among others, people who work for the Town, the schools, the hospital, in the hospitality business, and the building industry.
Habitat welcomes volunteer par cipa on from the community. Construc on on two, 2 bedroom, 2.5 bath homes in a duplex is star ng next month. The lo ery for those homes will be held in early summer. Habitat for Humanity is a 501 (c)3 non-profit. Please consider suppor ng them in any way that you can. Please contact Allan Dias (774-3683851), the Habitat construc on supervisor, if you would like to volunteer.
NEW WELL WATER TESTING REGS
According to local regula ons, effec ve last January, the owner of every well used for drinking water including those serving a property which is rented or leased shall have its water tested at a Massachuse s cer fied laboratory at a minimum of once a year.
The owner of a rental property shall make results of all water quality tests available to all tenants of the property and the Board of Health upon request. In cases where the well water does not meet the water quality standards in the regula ons, the Board of Health may require the property owner to provide an alterna ve approved source of drinking water for the tenants.
If your home is on well water, and you have not already done so, Atlan c East recommends the well water be tested before you have tenants. For more informa on on well water tes ng and the local regula ons, please visit: h ps://nantucketrealestate.com/wp-content/uploads/Nantucket_Private_Well_Regula ons_Final_Effec ve-1.1.24.pdf
Land Bank Raises Exemption
In 1983 the Nantucket Islands Land Bank was formed to preserve and protect Nantucket’s public open space, with a focus on conserving, recreation and agriculture for the benefit of the public. Since then the buyer of a property on Nantucket pays a 2% land bank fee which goes into a fund for the Land Bank to accomplish their mission. In the past 40 plus years, the Land Bank has acquired and maintained over 3,500 acres on Nantucket. The Land Bank has raised the First Time Homebuyer’s exemption from $1 million to $1.2 million dollars. This means that a buyer who has never owned real estate anywhere (not just on Nantucket) is exempt from paying the 2% on the first $1,200,000 of the purchase price. The Land Bank Fee is not tax-deductible but can be added to the cost basis of the property, capturing a tax benefit when selling. For more information, please contact the Land Bank directly at 508-228-7240.
Local Registration of Short-Term Rentals
Nantucket's local Short-Term Rental Registry is finally up and running. The good news is that, at the end of 2025 we will have accurate data, available to the public, about any nuisance properties. In summary, requirements for owners who rent on a short-term basis (less than 32 days) are:
Owner must obtain a Certificate of Registration for 2025 before renting. The annual fee is $250. There is now a 24 hour hotline to handle any complaints: 1-888-751-1911.
Owner must have an individual who can respond to the property at any time within 2 hours.
Owner must attest that there is insurance with adequate 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 contact the Nantucket Health Department to register locally. Here are some step by step instructions from Atlantic East: https://nantucketrealestate.com/wp-content/uploads/STEP-BY-STEP-REGISTER-NANTUCKET.pdf
Update onAssessed Property Values
Nantucket property owners should have recently received their Q3 tax bills which reflect the FY2025 updated assessed values. The assessment is the value placed upon real and personal property for the purpose of local property taxa on. The Massachuse s Department of Revenue requires, every 5 years, a full revalua on of all the proper es on the island and the next one is in FY2029. In the mean me the Assessor’s Department of the Town is required to ‘stay current’ with the market by doing interim year adjustments as necessary depending upon what the market is doing. The current tax rate is $3.28 for residen al, $3.11 for open space and $5.56 for commercial proper es. Those who qualify for a residen al exemp on can have their tax assessment reduced by $827,969 which has a current tax value of $2,715.74 on an annual basis. Any ques ons, please contact the Tax Assessor’s office directly at 508-228-7200.
SIXTOWN MEETINGS
(and counting...)
Short-term vaca on rentals have been blamed for everything on Nantucket from traffic, overcrowding, lack of affordable housing and even difficulty ge ng a dinner reserva on or a tee me. Nantucket's economy is based on tourism and there is a long tradi on of visitors coming to the island, especially during the summer months. Without any large scale resort proper es, our island welcomes visitors to stay mostly in private homes that rent. There are about 12,600 residen al houses on Nantucket - in 2022, the most recent year for which this sta s c is available, fewer than 14% of these rented on a shortterm basis. This means that 86% of all houses on Nantucket are owner-occupied, rented for longer than 32 days or vacant. Why should only people that can afford to rent for 32 days or longer be able to vaca on on Nantucket?
There have been six Town Mee ngs with hotly contested ar cles that sought to regulate and reduce the number of vaca on rentals on-island. To date we have passed a zoning by-law that prohibits the short-term rental of proper es owned by corpora ons and we have ins tuted a local short-term rental registry with regula ons to address nuisance proper es. The registry has a 24 hour hotline (1-508-315-6372) where people can report bad behavior which will be promptly addressed by the owner's representa ve. Last summer, the hotline had only one noise complaint that was a ributed to a short-term rental. We are looking forward to having a full season of informa on by this fall on which to make reasoned, though ul decisions for the future of the island.
Annual Town Mee ng is scheduled for Saturday, May 3, 2025, and, once again, there are a number of ci zen's ar cles related to short-term rentals. We fully support the ci zen’s Ar cle X submi ed by Caroline Baltzer which mirrors the decision issued by the Nantucket Zoning Board of Appeals last fall and codifies the rental of one's private property on a short-term basis in the zoning by-law. Town Mee ng is the legisla ve body for Nantucket and is the only way to put a stop to the ACK-Now funded lawsuits that have pi ed neighbors against neighbors. It is me to put our energy towards the many, and very real challenges facing our island.
Nantucket
HOUSING NEEDS COVENANT HOUSE PRICES FOR 2025: The Nantucket Housing Needs Covenant Program currently includes 120 properties across the island. For 2025, the Maximum Sales Price is capped at $760,278. To qualify for the program, purchasers must have a household income of $229,650 or less and unrestricted assets below $380,139. The 2025 transaction fee is $3,801, paid by the seller. The Maximum Sales Price formula takes 30% of the gross annual income of a household earning 125% of Nantucket’s Median Family income ($153,100) to determine an affordable monthly housing payment. This monthly payment is used to back into a mortgage with 90% financing. For more information: https://nantucketrealestate.com/wp-content/uploads/2025-COVENANT-PRGRM-UPDATE.pdf
START SPRING CLEANING EARLY! Get a jump on cleaning out your attic and basement this winter. The Nantucket Cottage Hospital Thrift Shop is accepting donations this winter on the following Saturdays between 10:00 - 11:30 AM at 17 India Street: January 18 and 25, February 8 and 15 and March 8 and 22. Simply pull up to the parking place across from the entrance and their friendly volunteers will help unload your car!
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
Volume XXI, Issue 1, Winter 2025
