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Last year was a year of change for Atlantic East Nantucket Real Estate. We purchased our new property and moved our business to 82 Easton Street in April, we welcomed two new agents, Linda Bellevue and John Trudel, to our office. We updated our rental program to better serve our rental owners and visitors and are currently making changes to our web site, NantucketRealEstate.com. What did not change are the fundamentals of how we do business. We do one thing only and that is list, sell and rent real estate on Nantucket, full�time and all year long. We are one of only two offices on Nantucket that practice Designated Agency - which means that we really do work for our clients by representing only one party at a time. Our Brokers hold more professional designations than any other office on Nantucket and take leadership positions within the community and the real estate industry. We are also all Realtors and our agents have the most experience, an average of 21+ years per licensee, on the island. Along with this experience comes island knowledge. We are locally owned and managed. If you are a seller you will never be charged an extra fee to pay an off-island franchise owner. Our business is largely referral based which means we are getting the job done and we must be doing it well! As we commence our 10th year in business, we thank you for your past support and look forward to working with you in the future. We are grateful for so much this year and especially for the continued recovery of the Nantucket real estate market. There have been steady gains since 2010 with a reduction in the number of properties for sale, fewer distressed sales (short sales and foreclosures), and a steady number of transactions, clearing out some inventory that had been languishing. Interest rates remain low, confidence is rapidly rising and buyers are finding that they need to act more quickly than in the past. A few years ago, a buyer could wait and see what happened to a particular property - not so any longer. If you are a buyer and see a property that will work for you do not wait. Change has come very rapidly from a still somewhat shaky market at the beginning of 2012 to the current very active and rising market conditions. The real estate market on Nantucket typically follows the financial markets which experienced strong gains with the Dow Jones Industrial Average up over 27% in 2013. Continued on page 2...
VIEW FROM THE ISLAND Nantucket Anomalies: When evaluating market statistics it is important to bear in mind market anomalies, of which there are many on Nantucket. The total number of sales in 2013 was 469, compared to 474 in 2012. The value represented by these sales was nearly $749 million in 2013 and $810 million in 2012. If the capital gains tax law changes had not been pending in 2012, many of the sales that closed in December of 2012 would have closed in the first quarter of 2013, resulting in a stronger 2013 than 2012. For the past 5 years, the average number of December sales has been approximately 40; in 2012, there were 71 December closings. Prices Rising: The average selling price of a Nantucket house is now $1,726,000, an increase of 3% over 2012. The average price of a parcel of vacant land is now $1,258,000, a decline of 18% from 2012. In 2012 the average land sale was $1,483,000, largely due to the sale of 3 parcels each for over $8 million, another island statistical anomaly. High Number of Sales for Low End of Market: There were 99 sales under $500,000 in 2013; in 2012 there were 70 and in 2011 there were 59. This can be explained by so many distressed sales (tending to be in the lower price ranges) coming to market and, as the lending climate became more productive, these properties were sold. Much of this inventory had been languishing for more than a year and 2013 was the year that buyers, once again, felt confidence in the market and had the means to purchase. And, those who thought that the bottom of the market was behind us were correct. Land Sales are Hopping: Because of the decline in the number of houses for sale, vacant land sales constituted nearly one quarter of the market in 2013. In 2008, there were only 26 land sales, in 2009 there were 30, in 2010 there were 43, in 2011 there were 39, and in 2012 there were 78 sales. In 2013 there were 94 land sales. Many buyers who were not able to find a house to suit their needs decided to buy land and build. In addition, speculative builders are back in the market once again. Market Moving Faster: The average time on the market is now 7.5 months, down from 9 months in 2012. This time is getting even shorter - current pending sales averaged only 5 months on the market. With the market absorption rate on the rise, we are facing new challenges with buyers in certain price sectors. Specifically the $2-$3 million range is one in which there are fewer listings than demand.
Cliff, 34 Surfside, 33
Sconset, 40
Naushop, 24
2013 SALES BY AREA
Madaket, 23
Mid Island, 87
Miacomet, 18 Tom Nevers, 18
Cisco/Hummock Pond, 17 West of Town, 15 Brant Point, 14 Town, 94
Monomoy, 9 Dionis, 7 Wauwinet, 5
Quaise, 1 Pocomo, 1
Squam, 2
Shimmo, 3
Shawkemo, 2
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Quidnet, 3
Polpis, 4 Madequecham, 3
Nashaquisset, 4
South of Town, 8
Things We Are Watching Bike Access out of Town - This has been an on-going discussion for years and it now appears to be closer to a solution with planned access out of Town on Washington Street extension, coming close to linking up with the network of bike paths island-wide. We will keep you posted on this. New Hospital - It is clear that the 50 year old Nantucket Cottage Hospital needs to be re-built to meet the standards of today (operational and efficiency). Discussions are underway as to where it should be located. Under consideration is the current site or, possibly, land owned by the Town where Wannacomet Water Company is currently sited at the beginning of Milestone Road. For anyone who doubts the need, the hospital is arranging for tours of the existing facility every Tuesday. It is a real eye-opener. Sewer to Madaket - Health Inspector Richard Ray updates us on the nitrogen-loading in Madaket: the Town is still exploring different options, including alternative septic systems, small package treatment plants, constructing a treatment facility for Madaket, and connecting the area to the existing wastewater treatment plant. There will be some sort of wastewater removal plan for Madaket, the question is how to do it and what the cost will be. Property Tax Bills - The Town now sends out property tax bills twice annually and each bill includes payment forms for 2 quarters. Property tax bills were sent out last week. Getting Off Island - The Steamship Authority fast ferry Iyanough has been taken out of service for the winter and will be back in the water in April 2014. The HyLine continues to operate their smaller high-speed boat 4 times daily to Hyannis. New Years’ Resolutions (or things we would do differently) - Atlantic East once again sponsored the Festival of Trees at the Nantucket Historical Association’s Whaling Museum. We also designed and decorated a tree with pictures and captions of things we would do differently in 2014! A number of us also spent a morning helping to sort gifts for children for the Inky Santa Toy program out at the Cape Cod Express warehouse building just before Christmas. It is a fun, and now annual, tradition for us and reminds us of the (sometimes unseen) need in our small community. A little help from lots of people really does make a difference. A Happy and Healthy New Year to all!
EROSION ON NANTUCKET There is the potential for erosion on any waterfront property and it may be greater on an island. Erosion on the island continues to be a robust topic of conversation, in particular because of what is happening on the northern end of Baxter Road in ‘Sconset. Many homes, threatened by erosion, have already been relocated to other parts of the island, a number of homes are in the process of being moved and there is a currently an area where it appears that the erosion is close to taking part of Baxter Road itself. Baxter Road homeowners are working with Town agencies and the Board of Selectmen to develop a plan for alternate access (including utilities) in the event that the road is claimed by erosion. Concurrently, a group of waterfront homeowners (SBPF - Siasconset Beach Preservation Fund) has reached agreement with the Town for anti-erosion control measures. The cost will be borne by the homeowners, some of which have been in the same homes for generations. At the core of this issue is the fact that most of the waterfront properties on Baxter Road abut a strip of Town-owned land between the properties and the beach. The property owners needed permission from the Town to implement any anti-erosion control measures since it could have an impact on Town-owned land or on other parts of the island. Many issues have been raised by the actions of Mother Nature, among them: liability, cost, unintended consequences to neighboring properties, the obligations of the Town to provide access and utlities, potential loss of property tax revenue and the rights of private homeowners to attempt to protect their properties. It appears that there are no simple answers to this complex situation.
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Nantucket: Home Prices 2001 - 2013 4th Q 2013
2500
2378
Avg Home ($OOO) Median Home ($OOO)
2271 2164
2103 1945
2000
1970
1672 1500
1666 1550
1478
1495
1726
1528 1425
1297 1187
1000
1150
1190 1100
917 827.5
1013
970
1050
999
775
500
0 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Welcome to John F. Trudel, III, SFR John first set foot on the island in the summer of 1989 and knew right away, while rounding Brant Point on the slow boat, Nantucket was the place he wanted to call home. John and his wife Susan have lived on the island full-time for twenty years, raising two wonderful young men, Jackie (age 18) and Zander (age 14), both born at the Nantucket Cottage Hospital. Actively involved in the community, John has coached youths in baseball, soccer, basketball and lacrosse. He has held positions on various boards including the Nantucket Little League, Nantucket Student Lacrosse, Nantucket Platform Tennis Association, and Nantucket Student Soccer. John has owned and operated a variety of businesses from a trucking company in New Jersey to a frozen yogurt shop downtown on Nantucket. Presently, John and his wife, Susan, own and operate the Nantucket Trading Post, a convenience store out of town and TPM, Inc., a construction and property management company. John's skills and experience as a contractor, property manager and real estate agent, allow him to help individual buyers and sellers see a property not only for its current strengths and values, but also for its potential. Let John share his enthusiasm and love of the island with you, whether you are buying, selling or renting a property on our island we call home. Page 4
Nantucket: Total # Properties Sold Year to Date As of 4th Q 2013 600
500
400
300
200
100
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total Homes Sold
239
302
361
468
398
284
341
211
205
309
297
375
357
Total Lots Sold
138
125
148
176
117
59
46
26
30
43
39
78
94
14
11
16
41
22
9
12
11
2
12
11
21
18
Total Commercial Sold
WHAT DO ALL THOSE INITIALS MEAN? The short answer is that the initials following our agents’ names mean that they care enough about the business of real estate to avail themselves of educational opportunities, offered by the National Association of Realtors, beyond the minimum required by law. Congratulations to Christine Whelden who just received her ABR (Accredited Buyer’s Representative) designation. The Accredited Buyer’s Representative (ABR®) designation is for real estate buyer agents who focus on working directly with buyer-clients at every stage of the home buying process. Our agents hold a collective 20 designations and certifications at this time and, interestingly, have, on average, over 21 years of practice in the business of real estate. Like the partridge song, we have 6 ABR’s, 5 RSPS’s (Resort and Second Home Property Specialist), 2 GRI’s (Graduate Realtor Institute). REALTORS® with the GRI designation have in-depth training in legal and regulatory issues, technology, professional standards, and the sales process. We also have one each of the following: ABRM: This designation is for a manager of an office with agents who hold the ABR designation. CRB: The Certified Real Estate Brokerage Manager (CRB) is one of the most respected and relevant designations offered in real estate business management and is awarded to REALTORS® who have completed advanced educational and professional requirements. CRB Designees are better positioned to streamline operations, integrate new technology and apply new trends and business strategies e-Pro: NAR's e-PRO® certification teaches the use of cutting-edge technologies and digital initiatives to link up with today's savvy real estate consumer. NAR Green: Through NAR's Green Designation, the Green Resource Council provides ongoing education, resources and tools so that real estate practitioners can successfully seek out, understand, and market properties with green features. SRES: The Seniors Real Estate Specialist® Designation program educates REALTORS® on how to profitably and ethically serve the real estate needs of the fastest growing market in real estate, clients age 50+. TRC: The Transnational Referral Certification trains the agent in integration of international referral business. SFR: The Short Sales and Foreclosure Resource® certification teaches real estate professionals to work with distressed sellers and the finance, tax, and legal professionals who can help them, qualify sellers for short sales, develop a short sale package, negotiate with lenders, limit risk, and protect buyers. Page 5
More on the Market Sales Activity is High: As of mid-January, there are 80 pending sales, considerably higher than one year ago at this time. The average selling price as a percentage of list price is now just shy of 94%. The average selling price as a percentage of assessed value is now 112.81%, up from 105% in 2012. Popular Locations: Properties on the water, or with strong water views and access, continue to move as do those in Town (94 sales), ‘Sconset (40 sales), the Cliff area (34 sales), Surfside (33 sales) and Naushop (24 sales). Summer Rentals are Booking Fast: Many rental homes are booking fast, especially for time during the month of August. We do have some good availability in July and more in June and September. Rental bookings started earlier than ever this year. Tenants are looking for clean, well-maintained homes with amenities such as central air, internet access and proximity to either town or the water. The Steamship Authority is now taking reservations for travel from May 14, 2014 through October 13, 2014 which may be made via the internet. Reservations may also be made via the telephone or in person. For more information www.SteamshipAuthority.com. Please check out our web site for the most current information at www.NantucketRealEstate.com.
Affordable Ownership Opportunity Sachem’s Path, a 40 home development located on 10 acres, made available by the Town, off of Surfside Road, expects to break ground in 2014. The developer, Housing Assistance Corporation is working with the Nantucket Housing Authority and recently distributed a survey to gather information from interested islanders. The houses will be priced to be affordable for mid-income islanders - those making under 150% of Nantucket County’s median income (median county income is currently at $84,855). The 1, 2 and 3 bedroom single family homes are designed to be very energy efficient, reducing the operational costs, and each will have its own driveway and yard. The homeowners must be able to qualify for a standard mortgage from a bank. For more information please go to the web site at www.SachemsPath.org. The deadline for the return of the survey is Monday, January 27th, 2014.
ATLANTIC EAST NANTUCKET REAL ESTATE Heidi Drew, ABR, RSPS Penny Dey, GRI, ABRM, Ken Beaugrand; Linda Bellevue, GRI, CBR; Peter DuPont; Alison K. Forsgren, ePro, NAR Green, SRES Mary D. Malavase, ABR, RSPS, TRC; Jane Miller, ABR, RSPS; Erikka Perkins; Meg Ruley, ABR, RSPS Lisa Sherburne, ABR, RSPS; John F. Trudel III, SFR; Melinda Vallett; Christine Whelden, ABR; Geri Walker Affiliate: Gail Osona
We believe in doing one thing and in doing it well. 82 Easton Street Nantucket MA 02554 t: 508-228-7707 1-800-228-4070
Volume X, Issue 1, Winter 2014