April Market Insights - Nantucket Real Estate

NANTUCKET REAL ESTATE Market Insights BY JEN ALLEN MONTHLY SALES HIGHLIGHTS

NOTABLE SALE

HIGHEST SALE

$36,000,000

$25,000,000*

$18,875,000

4 MIDDLE VALLEY ROAD PRIVATE SALE

FISHER’S

7 HEATHER LANE PRIVATE SALE

KEY MARKET STATISTICS

REVIEW

ALL PROPERTY TYPES

FY 2022

Transactions Dollar Volume ($in 000s)

FY 2021

139

$605,326

-23% f

$367,291

5.9

-47% f

6.3

97%

95%

2d

94%

-28% f

228

224

$468,847 3.1

Sale Price to Last Ask Price Active Listings (April)

5-YEAR AVG.

-42% f

131

Avg. Months on Market

% CHANGE YOY

91

127

Months Supply of Inventory

1.7

2.0

-15% f

7.2

New Contracts (April)

26

72

-64% f

32

NANTUCKET REAL ESTATE ACTIVITY THROUGH APRIL 2011–22

# of Transactions

Dollar Volume

APR 22

21 LINCOLN AVENUE PRIVATE SALE

Following the $267 million in total first quarter sales volume, April sales put up quite a show with $200 million in sales volume for the 30-day period alone. It was a headline-splashing month for Nantucket real estate with two property sales setting the record for the highest property sales on the island. Another four ultra-high-end transactions amounted to a total of six property transfers that totaled $120 million, or 60 percent of all monthly sales volume. All told, there were 46 transactions totaling $201.8 million in April. Impressive against nearly all other previous April periods, these figures represented a respective decline of 34 percent and 20 percent from the monstrous performance in April of 2021. Property inventory levels increased from March but were down 31 percent from the same time one year ago. Meanwhile, contract activity declined modestly from March figures and were off nearly 64 percent from April 2021. Here are Fisher’s April Market Insights…

HIGHEST LAND SALE

Dollar Volume per Quarter

Q1

Q2

# of Transactions

© 2 0 2 2 F I S H E R R E A L E S TAT E

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

1

NANTUCKET REAL ESTATE Market Insights RESIDENTIAL SALES ACTIVITY 2022

Total Transactions

% Change

SINGLE-FAMILY HOME SALES BY PRICE POINT $5M–$10M

5-Year Avg (2018-22)

>$10M

Transactions

Total Sales Volume

Transactions

Total Sales Volume

2011

2

$10,875,000

-

-

2012

3

$19,947,500

-

-

$7,200,000

1

$20,000,000

83

135

-39% f

89

$373,273,967

$419,509,174

-11% f

$273,587,187

Avg. Selling Price

$4,497,277

$3,107,475

45% d

$3,041,446

2013

Median Selling Price

1

$3,331,000

$2,400,000

39% d

$2,198,700

2014

4

$25,075,000

-

-

3.8

5.9

-35% f

6.9

2015

5

$34,900,000

1

$10,875,000

Total Sales Dollar Volume

Avg. Months on Market Avg. Price as % of Last Ask

97%

95%

2d

94%

2016

3

$19,250,000

1

$13,300,000

Avg. Price as % of Original Ask

96%

90%

6d

90%

2017

3

$24,123,000

2

$25,490,000

176%

138%

38d

139%

2018

10

$67,160,000

2

$28,850,000

2019

3

$18,445,000

1

$11,670,000

2020

7

$41,390,500

1

$25,000,000

2021

19

$130,636,150

1

$15,700,000

2022

14

$88,410,667

7

$122,375,000

Avg. Price as % of Assessed Value

•

•

APR 22

2021

BY JEN ALLEN

•

While we are unlikely to soon see figures that match the 2021 Nantucket real estate market, the 2022 market posted a solid performance through the first four months of the year thanks largely to ultra-high-end sales. Through April 30, 2022, singlefamily home sales (excluding condos, co-ops & 40B/covenant properties) totaled 131 transactions measuring $469 million in dollar volume. This is a respective decline of 42 percent and 23 percent from 2021, but in-line with the five-year transaction volume.

Dollar volume, on the other hand, surged 28 percent ahead of the five-year average.

Just as we saw last year, a larger percentage of year-to-date high-end sales continued to buoy average and median home values. Through April 30, 2022, the median home sale value increased 14 percent from this time last year to $2.1 million while the average home sale value jumped 32 percent to $3.6 million thanks to the record-setting sales at the top end of the market which served to influence the overall average sale price more significantly.

•

As has been the trend for a few years now, home sales under $1 million dropped to just four percent of year-to-date transaction volume wherein it tallied 11 percent for the five-year average. Sales between $1 million and $2 million also declined quite significantly from 33 percent of transactions one year ago (and 35 percent for the five-year average) to 24 percent of transactions through April 2022. Sales between $2 million to $4 million held steady while sales between $5 million to $10 million saw modest increases.

•

As we noted in the introduction, the 2022 market has been afire with high-profile property transactions, two of which upped the ante for the highest price paid for Nantucket property. Since the pandemic began, ultra-high-end ($10M-$20M) and mega-high-end sales ($20M+) have been steadily increasing as percentage of total sales activity. Historically, these transactions typically took place in the third and fourth quarters of any given year. Thus far in 2022, however, there were five ultra-high-end transactions (compared to one through this period last year) and two mega-high-end transactions (compared to none through April 2021). The highest price ever paid for a contiguous property is now $36 million thanks to the sale of 21 Lincoln Avenue. *The sale of 4 Middle Valley Road (and 48 Shimmo Pond Road) is recorded at $25 million but the true value is rumored to be closer to $38 million, which would be the highest undocumented sale on record.

With the continued strength in home sales amidst persistently tight supply, average marketing times continued to decline to a record low. It took slightly longer than three months for properties to sell through the first four months of the year, twice as fast as during this time last year. Sales discounts also continued to narrow given the increased number of full price and above full price offers. The average sale price from the last asking price rose two percentage points to 97 percent while the average price from the original asking price rose five percentage points to 96 percent. Homes sales as compared to the town’s assessed values jumped to 170 percent.

HISTORICAL COMPARISON OF CONTRACT ACTIVITY

•

•

With fewer than 90 properties on the market by the end of the April, contract activity remained well lower than this time in 2021 but consistent with the first three months of 2022. There were 26 Offers and Purchase and Sale agreements recorded (duplicates excluded) through April 30, 2022. This is consistent with many previous years but well below the record 72 contracts recorded during April 2022. What these figures continued to omit are the steady number of private transactions that only hit the MLS post-closing and didn’t reflect an Offer or P&S status during the first four months of the year.

Most of the first quarter contracts, 31 percent, were for properties last priced between $2 million and $3 million, an increase from what we typically see through the first four months of the year. New contract activity for the $1 million to $2 million saw 19 percent of the activity while properties last priced between $3 million and $4 million saw 15 percent of new contracts. For the upper end of the market above $5 million, there were six new contracts recorded, or 24 percent of all contract activity, once again highlighting the strength in the higher end of the market.

INVENTORY LEVELS

BY PRICE POINT

February

March

April

•

Though the seasonal nature of the island’s market led to a slight rise in inventory since the beginning of this year, Nantucket property inventory declined 33 percent from one year ago. As of April 30, 2022, there were just 88 properties listed for sale including residential (77), commercial (4) and vacant land (7) listings. The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured slightly higher than two months, nearly identical to this time last year. Single-family home inventory measured 13 fewer listings than April 2021 but 134 fewer than April 2020.

•

As we noted in previous reports, there is a dramatic yearly reduction in inventory for every million-dollar below the $5 million segment. Properties listed above $5 million are price points where inventory levels didn’t decline by more than half over the last year and, in fact, largely saw a year-over-year increase in inventory.

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

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NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

RESIDENTIAL SALES ACTIVITY 2022

Total Transactions

% Change

5-Year Avg (2018-22)

83

135

-39% f

89

$373,273,967

$419,509,174

-11% f

$273,587,187

Avg. Selling Price

$4,497,277

$3,107,475

45% d

$3,041,446

Median Selling Price

$3,331,000

$2,400,000

39% d

$2,198,700

3.8

5.9

-35% f

6.9

Avg. Price as % of Last Ask

97%

95%

2d

94%

Avg. Price as % of Original Ask

96%

90%

6d

90%

176%

138%

38d

139%

Total Sales Dollar Volume

Avg. Months on Market

APR 22

2021

Avg. Price as % of Assessed Value

•

While we are unlikely to soon see figures that match the 2021 Nantucket real estate market, the 2022 market posted a solid performance through the first four months of the year thanks largely to ultra-highend sales. Through April 30, 2022, single-family home sales (excluding condos, co-ops & 40B/covenant properties) totaled 131 transactions measuring $469 million in dollar volume. This is a respective decline of 42 percent and 23 percent from 2021, but in-line with the five-year transaction volume. Dollar volume, on the other hand, surged 28 percent ahead of the five-year average.

•

Just as we saw last year, a larger percentage of year-to-date high-end sales continued to buoy average and median home values. Through April 30, 2022, the median home sale value increased 14 percent from this time last year to $2.1 million while the average home sale value jumped 32 percent to $3.6 million thanks to the record-setting sales at the top end of the market which served to influence the overall average sale price more significantly.

•

With the continued strength in home sales amidst persistently tight supply, average marketing times continued to decline to a record low. It took slightly longer than three months for properties to sell through the first four months of the year, twice as fast as during this time last year. Sales discounts also continued to narrow given the increased number of full price and above full price offers. The average sale price from the last asking price rose two percentage points to 97 percent while the average price from the original asking price rose five percentage points to 96 percent. Homes sales as compared to the town’s assessed values jumped to 170 percent.

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

3

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

SINGLE-FAMILY HOME SALES BY PRICE POINT

APR 22

$5M–$10M

>$10M

Transactions

Total Sales Volume

Transactions

Total Sales Volume

2011

2

$10,875,000

-

-

2012

3

$19,947,500

-

-

2013

1

$7,200,000

1

$20,000,000

2014

4

$25,075,000

-

-

2015

5

$34,900,000

1

$10,875,000

2016

3

$19,250,000

1

$13,300,000

2017

3

$24,123,000

2

$25,490,000

2018

10

$67,160,000

2

$28,850,000

2019

3

$18,445,000

1

$11,670,000

2020

7

$41,390,500

1

$25,000,000

2021

19

$130,636,150

1

$15,700,000

2022

14

$88,410,667

7

$122,375,000

•

As has been the trend for a few years now, home sales under $1 million dropped to just four percent of year-to-date transaction volume wherein it tallied 11 percent for the five-year average. Sales between $1 million and $2 million also declined quite significantly from 33 percent of transactions one year ago (and 35 percent for the five-year average) to 24 percent of transactions through April 2022.

Sales between $2 million to $4 million held steady while sales between $5 million to $10 million saw modest increases.

•

As we noted in the introduction, the 2022 market has been afire with high-profile property transactions, two of which upped the ante for the highest price paid for Nantucket property. Since the pandemic began, ultra-high-end ($10M-$20M) and mega-high-end sales ($20M+) have been steadily increasing as percentage of total sales activity. Historically, these transactions typically took place in the third and fourth quarters of any given year. Thus far in 2022, however, there were five ultra-high-end transactions (compared to one through this period last year) and two mega-high-end transactions (compared to none through April 2021). The highest price ever paid for a contiguous property is now $36 million thanks to the sale of 21 Lincoln Avenue. *The sale of 4 Middle Valley Road (and 48 Shimmo Pond Road) is recorded at $25 million but the true value is rumored to be closer to $38 million, which would be the highest undocumented sale on record.

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

4

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

APR 22

HISTORICAL COMPARISON OF CONTRACT ACTIVITY

•

With fewer than 90 properties on the market by the end of the April, contract activity remained well lower than this time in 2021 but consistent with the first three months of 2022. There were 26 Offers and Purchase and Sale agreements recorded (duplicates excluded) through April 30, 2022. This is consistent with many previous years but well below the record 72 contracts recorded during April 2022. What these figures continued to omit are the steady number of private transactions that only hit the MLS post-closing and didn’t reflect an Offer or P&S status during the first four months of the year.

•

Most of the first quarter contracts, 31 percent, were for properties last priced between $2 million and $3 million, an increase from what we typically see through the first four months of the year. New contract activity for the $1 million to $2 million saw 19 percent of the activity while properties last priced between $3 million and $4 million saw 15 percent of new contracts. For the upper end of the market above $5 million, there were six new contracts recorded, or 24 percent of all contract activity, once again highlighting the strength in the higher end of the market.

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

5

NANTUCKET REAL ESTATE Market Insights

BY JEN ALLEN

APR 22

INVENTORY LEVELS BY PRICE POINT

February

March

April

•

Though the seasonal nature of the island’s market led to a slight rise in inventory since the beginning of this year, Nantucket property inventory declined 33 percent from one year ago.

As of April 30, 2022, there were just 88 properties listed for sale including residential (77), commercial (4) and vacant land (7) listings. The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured slightly higher than two months, nearly identical to this time last year. Single-family home inventory measured 13 fewer listings than April 2021 but 134 fewer than April 2020.

•

As we noted in previous reports, there is a dramatic yearly reduction in inventory for every million-dollar below the $5 million segment. Properties listed above $5 million are price points where inventory levels didn’t decline by more than half over the last year and, in fact, largely saw a year-over-year increase in inventory.

(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS

6