NANTUCKET REAL ESTATE Market Insights BY JEN ALLEN MONTHLY SALES HIGHLIGHTS
HIGHEST COMMERCIAL SALE
HIGHEST RESIDENTIAL SALE
$23,500,000
$28,899,984
$2,050,000
THE NANTUCKET INN PRIVATELY MARKETED
8 GRAND AVENUE MARKETED FOR [873 Days]
KEY MARKET STATISTICS
REVIEW
ALL PROPERTY TYPES
FY 2021
Transactions
The Nantucket real estate market
$1,340,126
35% d
$1,131,429
6.6
-39% f
6
96%
94%
2d
94%
Active Listings (Oct)
114
281
-59% f
320
Months Supply of Inventory
1.8
6.3
-72% f
10
New Contracts (Oct)
52
112
-54% f
62
445
$1,802,997 4
Sale Price to Last Ask Price
end sales and an impressive array of commercial property transfers (see above). Monthly sales included 81 transactions totaling $343
5-YEAR AVG.
421
590
Avg. Months on Market
October, with several notable high-
% CHANGE YOY
33% d
Dollar Volume ($in 000s)
continued to fire on all cylinders in
FY 2020
million, the third highest monthly dollar volume in Nantucket history
NANTUCKET REAL ESTATE ACTIVITY
bested only by 2020 figures. On a
THROUGH OCTOBER 2011–21
cumulative basis for the 10 months ending October 31, 2021, there were 590 property transfers totaling $1.8 billion. Single-family homes sales homes sold, as rapid marketing times and minimal discounts continued. Inventory levels reached new depths
# of Transactions
hit record numbers, with nearly 400
Dollar Volume
OCT 21
7 HINCKLEY LANE PRIVATELY MARKETED
FISHER’S
LONGEST MARKETED PROPERTY
while contract activity appeared to be adversely affected by limited property supply. Here are Fisher’s October Market Insights. Dollar Volume per Quarter
Q1
Q2
Q3
Q4 YTD
# of Transactions
© 2 0 2 1 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
BY JEN ALLEN
SINGLE-FAMILY DATA REVIEW
RESIDENTIAL SALES ANALYSIS
HIGH-END RESIDENTIAL SALES ANALYSIS
RAPID MARKETING TIMES & VIBRANT HIGH-END
RECORD SETTING ULTRA-HIGH-END SALES
2021
Total Transactions Total Sales Dollar Volume
% Change
$5M–$10M
5-Year Avg (2017-21)
389
345
13% d
302
$1,402,068,612
$1,182,201,037
19% d
$931,338,407
>$10M
Transactions
Total Sales Volume
Transactions
2011
7
$41,020,000
1
Total Sales Volume
$11,800,000
2012
14
$98,300,000
2
$29,800,000 $80,029,000
Avg. Selling Price
$3,604,289
$3,426,670
5% d
$3,008,872
Median Selling Price
2013
$2,800,000
$2,575,000
9% d
$2,194,500
8
$58,766,300
6
2014
4.0
7.0
-44% f
6.0
16
$98,887,500
5
$66,137,500
2015
11
$73,648,875
6
$82,000,000
Avg. Price as % of Last Ask
96%
94%
2d
94%
2016
18
$123,185,502
7
$90,525,000
Avg. Price as % of Original Ask
94%
89%
5d
91%
2017
23
$158,752,750
8
$101,290,000
Avg. Price as % of Assessed Value
158%
131%
27d
135%
2018
29
$186,472,000
8
$107,640,000
2019
24
$160,585,000
2
$30,670,000
2020
55
$351,427,175
10
$175,372,500
2021
49
$338,084,150
18
$260,040,000
Avg. Months on Market
•
•
OCT 21
2020
•
Single-family home sales (excluding condos, co-ops & covenant properties) during the month of October measured 59 transactions totaling $271 million. Although this represents a 31 percent and 13 percent respective decline from October 2020 figures, the dollar volume remains among the highest posted during this period thanks to a plethora of high-end transactions. This activity brought the yearto-date total to 389 single-family home sales totaling $1.4 billion through October 31, 2021, a 13 percent and 19 percent increase from one year ago, the previous best market on record. The fourth quarter is typically when the Nantucket market sees the bulk of its high-end transaction activity and 2021 has been no exception (more in the next section). With 16 sales between $10 million and $20 million, the average home sale price rose five percent to $3.6 million, while the median home sale value jumped nine percent to $2.8 million. This represents a respective 20 percent and 28 percent increase in these metrics over the five-year average. October property sales were notable not just for high-end transactions but also for a continued, rapid decline in marketing times. On average, properties that sold in October were marketed for 105 days, nearly two months faster than one year ago and slightly faster than the year-to-date average of 120 days. The speed at which properties are transacting has also resulted in reduced negotiability. Homes traded for an average of 96 percent of their last list price and 94 percent of the original price thanks to an increasing number of full price sales.
•
October sales continued to illustrate what has been another exceptional year for the high-end of the market. There were nine transactions between $5 million and $10 million, four ultra-high-end sales between $10 million and $20 million and two mega-high-end sales above $20 million. These transactions contributed nearly $150 million to monthly sales volume and included a new high mark for a non-waterfront, non-waterview property with the $23.5 million transfer of 7 Hinckley Lane.
•
As of October 31, 2021, there were 49 property transactions between $5 million and $10 million, nearly double the historic activity during this period prior to 2020, but slightly lower than what we saw one year ago. The ultra-high-end segment, however, is poised to set a new annual record for the number of transactions. So far this year there have been 18 transactions compared to just 10 in 2020. These sales contributed $260 million to aggregate sales volume, nearly $100 million more than this time last year. A total of 14 transactions were recorded in this segment of the market for 2020 so we shall see what the remainder of 2021 holds.
•
These transactions aided in continuing to lower high-end inventory and have resulted in many brokers needing to seek off-market opportunities for their high-end buyer clients. In fact, both $20M+ residential sales were for properties that were not actively listed.
MARKET INDICATORS
NANTUCKET PROPERTY INVENTORY
CONTRACT ACTIVITY
INVENTORY PLUMMETED TO NEW LOWS
NEW PURCHASES DECLINED TO NORMAL LEVELS
August
•
In broken record news, property inventory remained severely pressured by robust demand and plummeted to new depths. As of October 31, 2021, there were just 114 properties listed for sale including residential, commercial, and vacant land listings. This represented a decline of 59 percent from one year ago when there were 281 properties listed for sale. 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 properties, less than one month for vacant land and three months for commercial properties.
•
Every price point had markedly less inventory than one year ago. The $2 million to $3 million segment saw the largest year-over-year decline while the $3 million to $4 million price point was also considerably lower. Despite healthy activity in the ultra-high-end of the market, year-overyear inventory levels did not materially change. As of October 31, 2021, there were 11 properties listed for sale in this price point compared to 13 properties one year ago.
September
October
•
It appears that October new purchase activity was significantly hampered by limited property supply. This has been a developing trend over the last few months as noted in the above chart. Recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) for the monthly period ending October 31, 2021, totaled just 52 properties, down from the 112 reported one year ago and down from 61 contracts just one month ago. For the first time in nearly 18 months, monthly contract activity trailed the same period in 2019.
•
Most of the contracts booked in October, 29 percent, were for properties last priced between $2 million and $3 million, slightly higher than the 23 percent for this segment in 2020. New contracts for properties listed between $3 million and $4 million increased quite handsomely, while sales above $5 million continued to show solid activity as we approach year’s end.
•
Considering preliminary November sales data and the future sales pipeline, the Nantucket market may well nudge up to the $2 billion mark for full-year volume.
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS
2
NANTUCKET REAL ESTATE Market Insights
BY JEN ALLEN
RESIDENTIAL SALES ANALYSIS RAPID MARKETING TIMES & VIBRANT HIGH-END
2021
Total Transactions
% Change
5-Year Avg (2017-21)
389
345
13% d
302
$1,402,068,612
$1,182,201,037
19% d
$931,338,407
Avg. Selling Price
$3,604,289
$3,426,670
5% d
$3,008,872
Median Selling Price
$2,800,000
$2,575,000
9% d
$2,194,500
4.0
7.0
-44% f
6.0
Avg. Price as % of Last Ask
96%
94%
2d
94%
Avg. Price as % of Original Ask
94%
89%
5d
91%
Avg. Price as % of Assessed Value
158%
131%
27d
135%
Total Sales Dollar Volume
Avg. Months on Market
OCT 21
2020
•
Single-family home sales (excluding condos, co-ops & covenant properties) during the month of October measured 59 transactions totaling $271 million. Although this represents a 31 percent and 13 percent respective decline from October 2020 figures, the dollar volume remains among the highest posted during this period thanks to a plethora of high-end transactions. This activity brought the year-to-date total to 389 single-family home sales totaling $1.4 billion through October 31, 2021, a 13 percent and 19 percent increase from one year ago, the previous best market on record.
•
The fourth quarter is typically when the Nantucket market sees the bulk of its high-end transaction activity and 2021 has been no exception (more in the next section). With 16 sales between $10 million and $20 million, the average home sale price rose five percent to $3.6 million, while the median home sale value jumped nine percent to $2.8 million. This represents a respective 20 percent and 28 percent increase in these metrics over the five-year average.
•
October property sales were notable not just for high-end transactions but also for a continued, rapid decline in marketing times. On average, properties that sold in October were marketed for 105 days, nearly two months faster than one year ago and slightly faster than the year-to-date average of 120 days. The speed at which properties are transacting has also resulted in reduced negotiability. Homes traded for an average of 96 percent of their last list price and 94 percent of the original price thanks to an increasing number of full price sales.
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS
3
NANTUCKET REAL ESTATE Market Insights
BY JEN ALLEN
HIGH-END RESIDENTIAL SALES ANALYSIS RECORD SETTING ULTRA-HIGH-END SALES
OCT 21
$5M–$10M
>$10M
Transactions
Total Sales Volume
Transactions
Total Sales Volume
2011
7
$41,020,000
1
$11,800,000
2012
14
$98,300,000
2
$29,800,000
2013
8
$58,766,300
6
$80,029,000
2014
16
$98,887,500
5
$66,137,500
2015
11
$73,648,875
6
$82,000,000
2016
18
$123,185,502
7
$90,525,000
2017
23
$158,752,750
8
$101,290,000
2018
29
$186,472,000
8
$107,640,000
2019
24
$160,585,000
2
$30,670,000
2020
55
$351,427,175
10
$175,372,500
2021
49
$338,084,150
18
$260,040,000
•
October sales continued to illustrate what has been another exceptional year for the high-end of the market. There were nine transactions between $5 million and $10 million, four ultra-high-end sales between $10 million and $20 million and two mega-high-end sales above $20 million. These transactions contributed nearly $150 million to monthly sales volume and included a new high mark for a nonwaterfront, non-waterview property with the $23.5 million transfer of 7 Hinckley Lane.
•
As of October 31, 2021, there were 49 property transactions between $5 million and $10 million, nearly double the historic activity during this period prior to 2020, but slightly lower than what we saw one year ago. The ultra-high-end segment, however, is poised to set a new annual record for the number of transactions. So far this year there have been 18 transactions compared to just 10 in 2020. These sales contributed $260 million to aggregate sales volume, nearly $100 million more than this time last year. A total of 14 transactions were recorded in this segment of the market for 2020 so we shall see what the remainder of 2021 holds.
•
These transactions aided in continuing to lower high-end inventory and have resulted in many brokers needing to seek off-market opportunities for their high-end buyer clients. In fact, both $20M+ residential sales were for properties that were not actively listed.
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS
4
NANTUCKET REAL ESTATE Market Insights
BY JEN ALLEN
NANTUCKET PROPERTY INVENTORY
OCT 21
INVENTORY PLUMMETED TO NEW LOWS
•
In broken record news, property inventory remained severely pressured by robust demand and plummeted to new depths. As of October 31, 2021, there were just 114 properties listed for sale including residential, commercial, and vacant land listings. This represented a decline of 59 percent from one year ago when there were 281 properties listed for sale. 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 properties, less than one month for vacant land and three months for commercial properties.
•
Every price point had markedly less inventory than one year ago. The $2 million to $3 million segment saw the largest year-over-year decline while the $3 million to $4 million price point was also considerably lower. Despite healthy activity in the ultra-high-end of the market, year-over-year inventory levels did not materially change. As of October 31, 2021, there were 11 properties listed for sale in this price point compared to 13 properties one year ago.
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS
5
NANTUCKET REAL ESTATE Market Insights
BY JEN ALLEN
CONTRACT ACTIVITY
OCT 21
NEW PURCHASES DECLINED TO NORMAL LEVELS
August
September
October
•
It appears that October new purchase activity was significantly hampered by limited property supply. This has been a developing trend over the last few months as noted in the above chart. Recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) for the monthly period ending October 31, 2021, totaled just 52 properties, down from the 112 reported one year ago and down from 61 contracts just one month ago. For the first time in nearly 18 months, monthly contract activity trailed the same period in 2019.
•
Most of the contracts booked in October, 29 percent, were for properties last priced between $2 million and $3 million, slightly higher than the 23 percent for this segment in 2020. New contracts for properties listed between $3 million and $4 million increased quite handsomely, while sales above $5 million continued to show solid activity as we approach year’s end.
•
Considering preliminary November sales data and the future sales pipeline, the Nantucket market may well nudge up to the $2 billion mark for full-year volume.
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS
6