Spring 2024 Atlantic East Nantucket Real Estate Newsletter

SPRING

After a grey, windy, and rainy winter, it feels like spring is finally here. Longer days, the sun actually has some warmth to it and the daffodils are up all over the island. With the advent of spring comes our Annual Town Meeting, scheduled to start on May 7th. There are two articles, submitted by a citizen, which are generating the most buzz on Nantucket. Article 59 would codify the rental of one's private home in Nantucket's zoning by-law (and stop the neighbor against neighbor law suits) and Article 60 would ban any strictly corporate owned rentals going forward, which is something that should garner widespread support. We are urging people to support both articles. If you are registered to vote on Nantucket, it has never been more important to show up and have your voice heard.

The real estate market on Nantucket is showing signs of renewed life with an uptick in the number of properties for sale (147 vs. 80 at the end of Q1 last year), giving more choices to buyers. Prior to the pandemic, the number of listings at the end of the first quarter averaged around 250. Although many people who purchase on Nantucket are able to do so without securing financing, there is no question that higher interest rates over the past few years have put a chill on the pace of sales on island. Nantucket is a discretionary market, and many potential buyers are waiting to see what happens with interest rates as we get deeper into 2024, however, when a quality property is listed, there are multiple buyers ready to go, some of whom may have missed out on other properties in the past.

The number of sales through Q1 was statistically the same as last year (48). However, the dollars represented by these sales increased 28% over 2023. Total dollar volume was $208 million for Q1. The average home price on Nantucket climbed 8% from last year to $4,620,000 and the median home price is now $3,725,000. The average price of vacant land increased a staggering 125% from last year to $4.4 million; the median price of vacant land is up 44%. A cautionary word about these statistics - they are only for the first 3 months of the year and can be skewed by a few outlier sales.

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The average time that a property is listed for sale on Nantucket is still relatively low at 5 months. Again, when a property is priced for the current market, it sells quickly. The average sale as a percentage of list price is 93%, up from 91% in 2023. It has been over 90% since 2019, right before the pandemic-related run up in prices. The average sale as a percentage of the assessed value of the property is 142%, down from last year's 152% average.

There have been no sales below $500,000 on Nantucket in 2024 and only 3 sales to date under $1 million. There have been only 4 sales between $1-$2 million. The most active price sector is $2-$3 million (9) and $5-$7 million (9), followed by $3-$4 million and $4-5 million with 6 sales each. There have been a total of 6 sales over $7 million to date in 2024.

Today there are no residential properties listed under $1 million on Nantucket. There are only 11 free-standing houses currently listed under $2 million, many of which need updating. The average price of all listed properties is $5.9 million as of the end of Q1. The underlying cause of this challenging market is the overwhelming popularity of Nantucket. Stay tuned for more clarity as the year shapes up.

NEW WELLWATERTESTING REQUIREMENTS

On January 1, 2024 the Nantucket Board of Health instuted new regulaons that require the owner of a property with a private well to have the well tested for PFAS prior to transfer by sale. This new regulaon also applies to all new well permits. PFAS are chemical compounds that are dangerous and carcinogenic if they are present in drinking water. The Health Department is currently working on an outline of the regulaons which we will post on our web site. Any newly installed well is also subject to the requirements and it is incumbent upon the seller of a property on Nantucket to report the test results to the Health Department.

2024 Sales by Price Sector, as of Q1

THE MOSTIMPACTFULTHING COMING

At our Annual Town Meeting on May 7, the two most important articles to the Nantucket community are Articles 59 and 60. For the past four years, Town Meeting has repeatedly turned down proposals to restrict and control the short-term rental of one’s private home. We believe that the right to rent is part of the bundle of rights that come with property ownership, until that right is taken away.

A lawsuit was filed by C. Ward against the Town of Nantucket and her neighbors, claiming that the rental of their home constitutes a commercial use in a residential zone. The Town of Nantucket, each time a challenge was brought, upheld the right of owners to rent on a short-term basis. These decisions were appealed and the Land Court decision stated that, because the use of a home as a rental is not clearly defined in Nantucket’s Zoning By-Law, it is not an expressly permitted use. Our community has an opportunity to codify the more than 100 year old tradition of rentals on Nantucket (most of them short-term, defined as less than 32 days) by passing Article 59. Adoption of the article will stop the ACK-Now funded lawsuits against neighbors, two of which are still pending. Because it is a zoning article, it requires a 2/3 majority vote to pass.

Article 60 would ban short-term rentals in the future that are strictly owned by investors. Data shows that fewer than 3.5% of all Nantucket properties rented on a short-term basis are owned strictly by investors. Article 60 requires on a simple majority to pass because it is a general by-law

How can renting one’s home on a short-term basis be illegal if it has been happening on Nantucket since before there was zoning? How can the Town and the State require owners of STR’s to register their properties, and in the case of the State, TAX them if it is not a legal use? The power to fix this is the vote which is in the hands of Nantucket voters. Let’s use it.

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 will be 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 provide a certificate of 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

147

The number of listings as of Q1

93%

5

IS RENTAL ACTIVITY DOWN THIS YEAR?

If this headline looks familiar to you, it is. We posted a

with the same title. If you are asking yourself this question you

blog entry in 2017 are not alone, and it has happened before. We have heard from many homeowners recently who haven't booked as many weeks as they'd have liked for the 2024 season. Just as we questioned in 2017, we are wondering if we have now pushed the prices higher than the market can bear. In 2021 and 2022, there was a pandemic-driven frenzy of tenants looking to book and not enough rentals to accommodate them. As a result, rates increased in response to that market.

Now COVID restrictions have eased and travel to Europe and other coastal locations in the US is much easier, possibly even easier than getting to the island in some instances. In 2017 our advice was this Try to look at your home through objective eyes. What do your guests see when they first walk through the door? Is your home clean and fresh and welcoming? If not, new quality linens and fresh paint go a long way. A thorough spring cleaning should be done before each rental season with touch ups done during turnovers as needed. If we are going to ask premium prices we should offer a premium product. This may not be enough in some instances. Some homeowners may need to reassess their rates compared to similar inventory. For example, for years, you could ask as much as an additional $10,000 per week if you added a pool to your property, so many homeowners did that. Now, the inventory of homes with pools may be exceeding the market demand. As always, our team at Atlantic East is happy to help advise you on pricing or minor improvements to help best present your rental home. Also, it's important to remember that the market is cyclical. If we listen to what it is telling us and act accordingly, the highs and lows become more manageable.

Our Spring Harbinger – the 48 Annual Nantucket Daffodil Fesval kicks off on Thursday, April 25 and closes out on Sunday, April 28 This year's theme is “Spring Sings…Let's Party.”

The anque car parade and show aerward on Main Street is really something to behold and always draws a huge crowd with many brave souls and vehicles sporng costumes for the occasion. This year promises to be extra special with more cars than ever. Admissions have been capped and a waing list created for those anque car owners sll wishing to join in. There’s always next year! Another not to be missed event is the Daffodil Show, sponsored by The Nantucket Garden Club, held on Saturday and Sunday at Bartle's Ocean View Farm. A mind-boggling number of floral arrangements, horcultural entries and photographs will be judged and on display for the public to enjoy. Who knew there were so many daffodil variees? Our very own, Mary Malavase, knew. She is a naonal judge and has been one of this event's judges from the start. Mary now even teaches the fine art of Daffodil Compeon Judging across the country.

Something new this year is the LOOK Book Daffodil Fesval Scavenger Hunt put on by the Chamber of Commerce. Teams will compete in a scavenger hunt carefully curated by “The Look Book” author Barbara Tibbes. Prizes will be awarded to three randomly selected winning teams. To join in on the fun, pick up your “kit” at the Chamber of Commerce on Zero Main Street beginning Thursday, April th25 . These are just a few of the happenings. Visit the Nantucket Chamber of Commerce website page devoted to this spectacular weekend – - for a complete lisng of events. www.nantucketchamber.org/daffodil-fesval/

THISANDTHAT

Nantucket Community Television (NCTV) now has two channels – Channel 8 covers mostly government information and meetings and the new Channel 1072 (HDTV) enables the community to view a vast amount of programming in high definition, including Whaler sports. Check it out – it is crystal clear

Atlantic East has a Harbor Web Cam that lives on top of the roof at the Whaling Museum. It is a wonderful way to see what's going on in Nantucket Harbor and on lower Broad Street, at all times of the year. It can be found .here

We are proud sponsors of the inaugural which will illuminate voices of New Moon Fest women storytellers and showcase imaginative films that honor the feminine spirit. New Moon Fest will be held on May 25th at the Siasconset Casino. Atlantic East has also been a faithful supporter of the for many years – dates this year are June 19-24th. Nantucket Film Festival

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;

Ken Beaugrand, Referring Broker; 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