Posted: May 28, 2013 by Edward Sanford
Four months into the 2013 sales year, the Nantucket real estate market has moderated slightly overall. Total sales through April 30 were $99.4 million versus $138.6 million for this same time frame in 2012. Transactions totaled 93 against 101 sales for 2012. With transactions down just over 7% but dollar volume down 27% it is easy to see that the activity has largely been in the lower end of the market. In fact, transactions below $1,000,000 are up 25%. In contrast, sales over $2,000,000 are down from 21 as of April 30, 2012 to 6 for the same period this year.
For 2013, sales under $2 million represent nearly 95% of all transactions. With the local economy doing very well, construction especially, the continued low interest rates, qualified buyers have been snapping up properties, especially in the under $1,000,000 price segment.
We still foresee a very active sales market this summer. After many years of buyers dictating the market, sellers have finally gained equal footing. In the lower price segments, sellers are raising prices as demand heats up. With positive economic news being the rule of the day, we see no reason for a cessation of demand. There are still buying opportunities as the average days on market still hovers over 300. But that number is declining as well. If the market remains consistent, we will see the first wholesale price increases in 5 years. Ultimately, buyers will need to step up if they want any price remnants of the quickly receding recession.
For the most current market information go to the Great Point Properties’ Market Report page at http://www.greatpointproperties.com/market-reports. The market is moving so keep informed!