KEY MARKET METRICS
January sales activity suggests that the Nantucket real estate market is headed back to more historic norms after a three-year period that will likely stand as an anomaly for quite some time. Monthly transaction volume dropped to just 18 property transfers totaling $63.6 million, well below both the year-over-year and five-year trailing averages. The reduction in sales continued to be driven by the sheer dearth of listing inventory, though interest rates and the seasonality of the market were complimentary culprits. Here are Fisher’s January Market Insights...
NANTUCKET REAL ESTATE ACTIVITY
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS 1
Market Insights BY JEN ALLEN NANTUCKET REAL ESTATE
$12,015,000 34 BREWSTER ROAD MARKETED FOR [36 Days] $5,990,000 10B DELANEY ROAD MARKETED FOR [92 Days] $1,900,000 34 CANNONBURY LANE PRIVATELY MARKETED HIGHEST RESIDENTIAL SALE HIGHEST SPEC SALE MONTHLY SALES HIGHLIGHTS ALL PROPERTY TYPES 2023 2022 % CHANGE YOY 5-YEAR AVG. Transactions 18 35 -49% f 34 Dollar Volume ($ in 000s) $63,600 $103,869 -39% f $88,649 Months on Market 2.3 2.7 -15% f 5.6 Sale Price to Last Ask 99% 96% 3 d 95% Active Listings 86 57 51% d 172 Projected Absorption 2.4 0.9 157% d 5.9 New Monthly Contracts 5 33 -85% f 27 Dollar Volume # of Transactions January Dollar Volume # of Transactions
THROUGH JANUARY 2013 - 2023
FISHER’S JAN ‘23 REVIEW
HIGHEST LAND SALE
Market Insights
BY JEN ALLEN
VACANT LAND SALES ACTIVITY
PRONOUNCED DECLINE IN ACTIVITY FROM 2022
• Vacant land sales were markedly lower in January 2023 as compared to 2022, and just slightly below the five-year average, driven by the fact that just 13 parcels were listed for sale.
• Both transactions that took place were private sales, rendering no Month on Market data for these sales.
• The $1.9 million sale of 39 Cannonbury Lane represented a 37 percent annualized return since its previous sale in April 2021.
RESIDENTIAL SALES ACTIVITY
HOME SALES SAW LESS OF A YOY DECLINE
• Single-family home sales (excluding condos, co-ops, multi-family & covenant properties) during the month of January declined less than land sales, down just 24 percent on a transaction basis and 21 percent on a dollar volume basis from 2022.
• The wide range in sale prices -- $650,000 to $12 million – resulted in a lower median home sale price but a rise in the average sale price. With more data in the coming months, we will be able to extract more information from these metrics.
• Sales metrics remained vibrant across the board.
CONTRACT ACTIVITY STEEP DECLINE IN NEW CONTRACTS
• In what could foreshadow 2023 activity, new monthly contract activity was well below last year’s volume and pre-pandemic norms. Recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) totaled just five properties, markedly below all previous records.
• Of the few new contracts, four were for properties last listed below $3 million and one was for the highest sale of the month at 34 Brewster Road.
• Time will tell if buyer motivation increases with spring listing activity.
NANTUCKET PROPERTY INVENTORY
HIGHER THAN 2022 BUT WELL BELOW THE NORM
• Although property inventory remained at historic lows, there was a slight increase from 2022 levels. As of January 31, 2023, there were just 86 properties listed for sale including residential, commercial, and vacant land listings.
• The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured two months for residential and vacant land properties, and seven months for commercial properties.
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS 2 2 2023 2022 % Change 5 Year Avg Transactions 2 9 -78% f 5 Total Sales Dollar Volume $4,300,000 $23,795,000 -82% f $10,261,250 Avg. Selling Price $2,150,000 $2,643,889 -19% f $1,840,824 Median Selling Price $2,150,000 $1,000,000 115% d $1,489,550 Avg. Months on Market - 5.3 0 7.4 Avg. Price as % of Last Ask 98% 91% 7 d 95% Avg. Price as % of Original Ask 98% 88% 10 d 90% Avg. Price as % of Assessed Value 144% 149% -5 f 135% 2023 2022 % Change 5-Year Avg Total Transactions 16 21 -24% f 23 Total Sales Dollar Volume $59,300,500 $74,861,000 -21% f $69,946,825 Avg. Selling Price $3,706,281 $3,564,810 4% d $3,178,106 Median Selling Price $2,187,500 $3,331,000 -34% f $2,432,700 Avg. Months on Market 2.3 2.2 7% d 6.3 Avg. Price as % of Last Ask 99% 96% 3 d 94% Avg. Price as % of Original Ask 98% 96% 2 d 91% Avg. Price as % of Assessed Value 167% 166% 1 d 152%
January
Number of Properties
