FISHER’S
NANTUCKET REAL ESTATE
SEPT ‘23 REVIEW
KEY MARKET METRICS
Market Insights BY JEN ALLEN
ALL PROPERTY TYPES
2023
5-YEAR AVG.
295
-31% f
325
$814,206
$1,060,556
-23% f
$995,285
Months on Market
3.1
2.6
19% d
4.6
Sale Price to Last Ask
97%
97%
0 r
95%
Dollar Volume ($ in 000s)
times where it’s a challenge to find
% CHANGE YOY
204
Transactions
For Fisher’s monthly reports, there are
2022
a meaningful summary of the data.
Active Listings
161
154
5% d
254
Other times, as in September, the story
Projected Absorption
6
5.6
7% d
8.4
New Monthly Contracts
36
43
-16% f
65
essentially writes itself and trends start to evolve sufficiently to begin a different narrative. September transactions
NANTUCKET REAL ESTATE ACTIVITY
illustrated that the top end of the
THROUGH SEPTEMBER 2013 - 2023
Nantucket real estate is not only alive and well, it’s still thriving. In a time where most sales metrics are starting to fade
from the rest of the market. It continues
Dollar Volume
the data from the high end stands apart
# of Transactions
compared to the period from 2020-2022,
to set records while the rest of the market posts a relative retreat. Here are Fisher’s September Market Insights…
Dollar Volume per Quarter
Q1
Q2
Q3
# of Transactions
MONTHLY SALES HIGHLIGHTS
HIGHEST SALE
ABOVE-ASK SALE
STEEPEST DISCOUNT
$42,000,000
$9,250,000
$18,000,000
68 & 72 MONOMOY ROAD PRIVATE SALE
64 HULBERT AVENUE SOLD FOR 117% OVER ORIGINAL PRICE
72 POCOMO ROAD SOLD FOR 83% OF ORIGINAL PRICE
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS
1
FISHER’S SEPT ‘23 REVIEW Market Insights BY JEN ALLEN SINGLE-FAMILY SALES ACTIVITY HIGH END SALES TRENDING HIGHER
2023
Transactions
2022
% Change
5 Year Avg.
149
188
-21% f
224
$690,486,581
$837,366,512
-18% f
$804,596,001
Avg. Selling Price
$4,634,138
$4,454,077
4% d
$3,683,990
Median Selling Price
$3,150,000
$3,317,500
-5% f
$2,716,000
Total Sales Dollar Volume
Avg. Months on Market
3.2
2.7
19% d
4.7
Avg. Price as % of Last Ask
97%
97%
0r
95%
Avg. Price as % of Original Ask
94%
96%
-2 f
93%
Avg. Price as % of Assessed Value
176%
187%
-12 f
156%
• The various definitions for the high-end segment of our market have evolved over time as the price tag of real estate has trended ever higher. For a long time, we referred to the “high-end” as sales above $5 million as this definition was sufficient to summarize the limited number of transactions in this segment. Now, we have the high-end ($5M+), the ultra-high end ($10M+) and the mega-high end ($20M+). And it’s the latter two segments that have been turning heads and making headlines. • Prior to 2022, the record sale for the highest, contiguous residential sale stood for 12 years. It was set in 2010 with a high-water mark of $27.5 million. Since 2022, there have been four residential sales that have far exceeded that number with the most recent property trading for $42 million. In addition to these record-breaking sales, the ultra-high end of the market, which saw two transactions in 2019, soared to 12 transactions in 2021 and in 2022. And this doesn’t even account for vacant land transfers or the volume of homes that are worth $40 million or more with all the building and investment that has taken place in recent years.
CONTRACT ACTIVITY NEW PURCHASES SLOW BUT MARKETING TIMES STILL SWIFT
• Single-family home sales (excluding condos, co-ops & 40B or covenant properties) totaled 149 transactions through September, down 21 percent one year ago and 33 percent from the five-year average. Cumulative dollar volume declined by 18 percent and measured just shy of $700 million. These aggregate metrics have been on the decline for the better part of 18 months. At first, the decline was largely attributed to constrained inventory; now, it’s a multitude of headwinds that seem to be giving buyers more pause. • As we look at an overall decline in sales and dollar volume activity, one metric that continues to soar is the average home sale value. We will delve into this more in the next section but the average selling price for a single-family home as of September 30, 2023, was $4.63 million, well above the $3.78 million for the five-year average. This increase has been driven not least by broad property appreciation since 2020, but also by the number of high-end, namely ultra-high end ($10M+), sales that have occurred. The highest end sales seem to be the transactions that are still trending positively in regard to both volume and value.
HIGH END SALES BY PRICE POINT RECORD SETTING VOLUME & VALUES
$5M–$10M Transactions
$10M-$20M
Total Sales Volume
Transactions
Total Sales Volume
$64,560,000
>$20M Transactions
Total Sales Volume
3
$69,500,000
2018
18
$114,097,500
5
2019
18
$123,340,000
2
$30,670,000
2020
40
$255,552,175
3
$44,350,000
2021
41
$288,709,150
12
$160,540,000
2022
40
$258,965,611
12
$155,725,000
2
$73,000,000
2023
34
$217,395,538
8
$98,573,000
3
$107,002,500
• Of the 34 September transactions, 13 went to contract very quickly with the properties registering less than 30 days of marketing time. Another four transactions took place in less than 45 days, illustrating that there is still a sense of urgency for certain property types and price points. Overall, however, the total number of new purchase contracts booked during the month fell to 36, down from 52 contracts in August and down from 43 new contracts during September 2022. • Of the contracts that were publicly recorded during September, the majority (31%) were for properties last priced between $2 million and $3 million. The next highest segment was for properties between $4 million and $5 million. Not surprisingly, there was also seven contracts for the high-end ($5M+) with two of those above $10 million.
July
August
September
(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS
2