Nantucket real estate market update - July 15, 2007
By Brian-Logan Reid, Broker
Perhaps prompted by the warmer weather, the buyers have stepped up and started acquiring Nantucket real estate again. Following the typical seasonal pattern, the late spring/early summer is showing that buyers are stepping back into the market, even though it is not at the same pace as the past two or three years.
According to the “Real Estate Report” (Nantucket Indpendent, 7/11/2007), there have been 193 total transactions worth about $331 million, while the same period in 2006 saw a total of 249 total transactions worth about $484 million.
Other notes from the report:
- - for the first time in five years, the average and median home sale prices and the average and median land sale prices has fallen from 2006
- - in the first half of 2007, 71% of sales occurred over $1 million; 53% of sales occurred over $2 million; 6% of sales occurred under $1 million
- - prices range from a $225,000 mid-island condo to a $21.5 million oceanfront estate in Squam
A note of good news is that properties at all price tiers are selling: houses under $1 million (which will always continue to sell well, as this is the entry level of the market), but also properties at the $2, $4, $6, and even $9 million tier are moving, which is good in that there does not appear to be any specific tier that is not moving. A few years ago there was as an abundance of properties between $2 and $3 million that just sat and sat on the market for many months until they either were taken off the market or eventually sold.
What I am gathering from all of this data is that we are finally returning to a more stable market but I would not go as far as calling this a ‘buyer’s’ market. It may be more adventageous for buyers right now because of the large number of properties on the market, allowing them to pick and choose and compare homes, but most properties are still being purchased close to their asking prices, so prices are not falling precipitiously like in several other areas of the country. Also, it is important to remember that markets are cyclical and do not always go up…ANY market be it the stock market or the real estate market. The Nantucket market may be slighly insulated from the mainland in terms of price buoyancy, but it is not impenetrable as we now see.
At this stage, I’m advising my seller clients who are considering listing their properties and adding to the very high inventory level, to work with me to set accurate and realistic asking prices. Fortunately for the majority of Nantucket property owners, they do not NEED to sell so they are not adding more inventory to the market. My buyer clients, on the other hand, are enjoying taking their time browsing lots of properties and have no qualms about submitting ‘low-ball’ offers, even when they are outright rejected - this is what you can do when the market leans in the buyers direction.
As always, feel free to contact me with questions or if you are interested in acquiring a property!