Great Point Properties News

Posted January 11, 2010

2009 in the REARVIEW MIRROR
Although 2009 was a year we are happy to be done with, in retrospect, things turned out a bit better that we could have wished for.  The annual sales volume, since bottoming in June at $282,465,000, finished the year at $417,260,000.  This number was 25.5% lower than a poor year in 2008.  However, transactions were down only 5% to a 228 total.  To put these numbers in perspective, the dollar volume of 2009 was slightly higher than the volume in 1998.  We approached that number again in the post 9/11 recession of 2001 and 2002.  Perhaps what is so dramatic is our decline from the 2005 peak; we are down 64% and 60% respectively for dollar and transaction volume.  2009 marked the 4th year in a row for declines in the overall market.

HAVING LIVED THROUGH A BAD MARKET ONCE BEFORE
The first real peak in real estate prices on Nantucket was realized in 1986. A flurry of activity occurred as a result of a looming tax reform act.  However, this created a bit of a hangover going into 1987. There was a bounce back in activity in 1988 but not to the 1986 levels.  Just two years later sales bottomed in the wake of the Savings and Loan crisis.  From peak to trough there was a 54% decline is dollar volume.  Beginning in 1990 Nantucket saw 10 years of uninterrupted growth. Today we have seen a 65% decline in volume.  So, can I state unequivocally that we stand at the dawn of a new bull market?  No.  But it seems perfectly reasonable to think that, as we have witnessed a significant decline, better times are ahead.

IT IS A GOOD TIME TO BUY, Chapter 3
As we have stated in October and December, we feel that today’s market represents an excellent buying opportunity.  Nantucket is a strong market in general.  Owners are well established financially and the desire to summer here is unabated.  Unlike the late 1980 bear market, this downturn has not been driven by speculative foreclosures.  But prices have made a steady retreat and coupled with historically low interest rates, the true cost of purchasing a property is significantly less than it was few short years ago.  We will not be so smug as to make grand pronouncements about market moves but it seems clear we are bouncing along a bottom.  If history is a guide that bottom will not be protracted. 

CALL US.  WE ARE READY TO HELP.
We, at Great Point Properties, are happy to discuss the Nantucket real estate market with you.  We live here (even during our lengthy winter) and make real estate our profession.  We know the island and we can offer you the expertise, local knowledge, and service you deserve.  So give us a call.  The first step is to talk and take a look.  And that does not cost anything.

NANTUCKET VACATION RENTALS
We are busy booking up for the 2010 rental season. If you are planning for a Nantucket summer vacation next year give us a ring.  We have over 600 great houses to choose from and a very experienced staff to assist you.  As we approach the spring the better properties will be booked.

Posted December 16th, 2009

THE NANTUCKET REAL ESTATE MARKET HAS PICKED UP

Over the last 3 months Nantucket real estate sales have picked up.  I will not presume to offer a reason, other than markets can only go down for so long.  As the Nantucket Real Estate market had been in decline since 2006, the laws of market dictate a turn around at some point.  It may be hubris to announce that the last 3 month’s activity is the vanguard of an improving market.  We think so, but time is always the truth-sayer.

THE NANTUCKET NUMBERS

Since bottoming in June, estimated annual real estate sales have risen from $268,000,000 to $400,000,000.  With 32 properties currently under agreement, I think we will end up around $425,000,000 for the year.  Put into perspective, this is about where we were in 1998.  Transaction numbers will be about the same as last year, and that number is at historic lows.  I have statistics complied by Nantucket Listing Service going back to 1986 and there have never been transaction numbers (low 200s) that low.  So it is not a fetch to assume we have bottomed and the Nantucket real estate market for Sellers will slowly start to improve.

IT IS A GOOD TIME TO BUY

As Great Point Properties stated in October, it is a good time to buy property on Nantucket.  The market is still slow, inventories are high, and the selling season is behind us.  If our judgment is correct next summer will be a better time for Sellers and as a result prices will start to firm up. For this year sales are going at an average of 90% of asking.  That number will definitely go up as sales increase.  As our economy improves, Nantucket's sales market will as well. 

CALL GREAT POINT PROPERTIES.  WE ARE READY TO HELP.

We, at Great Point Properties, are happy to discuss the Nantucket real estate market with you.  We live here and make real estate our profession.  We know the island and we can offer you the expertise, local knowledge, and service you deserve.  Give us a call.  It is a great time to buy.