A MUCH BUSIER AUGUST
For the first time in many years the Nantucket real estate market experienced a surge in buying activity in late July through August 2012. The numbers speak for themselves.
In all segments of the Nantucket real estate market, except the dollar volume in the $4,000,000 to $6,000,000 segment, all sales are well ahead of last year. The most startling statistic was home sales for August. They were up 176% in dollar volume from last August, with nearly $94,000,000 in sales verses $34,000,000 for 2011. The fall promises to be more of the same. Last September there were 40 sales totaling $68,000,000 and we expect those numbers to be easily surpassed. Currently we are on track for $780,000,000 in sales for the year, well over the $524,000,000 for 2011. If the sales pace keeps up we could well surpass $800,000,000, a volume not reached since 2007.
As we noted last month, despite the strong sales over the summer, the Nantucket real estate market is still in a fundamental correction. August 2012 saw 80 price reductions. Houses currently listed are averaging 297 days on market. This is a slight decrease from the 305 days on market as of August 31, 2011. Despite the vastly improved sales climate, many metrics still point to a fragile sales environment. We hope that the current trend is marking the beginning of a more stable sales climate. Since 2009 we have been slowly working towards that end.
Comparing August 31, 2010 to August 31, 2012, the chart above shows that inventories are down. Yet, there have been more closings and price reductions have abated. All are good signs of a stabilizing market. If these trends continue, buyers who do not act soon may be missing the last good opportunity to take advantage to the final vestiges of the economic calamity of 2008.