Summer Sales Market - July 2015
Summer real estate sales on Nantucket have certainly continued on year to date trends thus far in 2015. Since June 1st, the market has still underperformed compared to last year. The sluggish sales volume that characterized Q1 and Q2 has continued into the summer months, leaving transaction volume at just 75% of the near record 2014 numbers. This slow growth for sales has, in turn, caused the average Days on Market (DOM) to rise by 15% over last year’s totals.
Below are pie charts that break down sales transactions from 2014 and 2015 by town district. Looking at these graphs, it is notable that the share of sales based on location is almost identical year over year. Sales volume is the highest in Town and Mid Island, while Tom Nevers sales show the largest growth with an increase of 5% 2015 vs. 2014. Although Town and Mid-island seem to occupy premium positions in the market, a major caveat is that properties in these location are usually priced at either end of the cost spectrum. In Mid -island, the fourteen properties sold so far this summer had an average price of $679,835, while in Town, the average house sold cost the buyer a total of $1,899,154 (not including the 3 Hulbert sale).
*Data adopted from Great Point Properties’ research on 2014 and 2015 real estate sales posted in the Nantucket Multiple Listing Service (LINK).
*Town breakdown for 2015 includes Brant Point, Town, West of Town, and South of Town numbers, most of which constituted as “Town” in 2014.
The table below, which compares Nantucket real estate sales data with numbers from 2014, also helps illuminate current market trends. One such trend is that lower end properties are appreciating into the middle-market due to high demand. Sales under $500,000 have been seriously kneecapped by rising asking prices and summer sales under one million have decreased by 35% compared to 2014.
Although the purchase of 3 Hulbert Avenue for $26,500,000 in early June was nearly double last year’s highest summer sale, premium properties over 5 million have still been afflicted by the lower transaction volume characterizing the market as a whole. The only properties that seem immune to these effects are priced between 1-5 million. The price segment from 1-3 million has been particularly impressive, currently comprising 41% of total sales so far this summer, which represents a 10% increase from last year. These sales have helped drive average and median selling prices for 2015 well above last year’s totals.
Since 2012, the third quarter has been growing at a compounding annual rate of 7.8% and has recorded the second highest dollar volume each year without fail. With 98 properties currently under agreement and new developments airing soon, look to see if summer sales can push Q3 to reach the record heights of 2014.